n 357 
hl3 B8 
opy 1 



A REPORT 

Upon the Business and Financial 

Administration of the Harrisburg 

School District 






Prepared for the 

Harrisburg Chamber of Commerce 
HARRISBURG, PENNSYLVANIA 

by the 

BUREAU OF MUNICIPAL RESEARCH 

NEW YORK CITY 



Under the direction of the Civic Committee of the 
Chamber of Commerce 

A. C. Stamm, Chairman, Robert McCormlck, George A. Shreiner, 
Robt. A. Enders, Warwick M. Ogelsby, John F. Sweeney, 

Francis J. Hall, Samuel F. Rambo, John Fox Weiss. 

OFFICERS. 

David E. Tracy, Edward L. McColgin, Charles W. Burtnett, 

President. Secretary. 1st Vice President, 

Arthur D. Bacon, Robert IVlcCormick, 

2nd Vice President. Treasurer. 



REPORT 



ON A 



Survey of the Organization and 

Administration of the 

Public Schools 



OF 



Harrisburg, Pa. 



PREPARED BY THE 

Bureau of Municipal Research 

NEW YORK 



FEBRUARY-MAY. 1917 






THE TELEGRAPH PRINTING COMPANY 
HARRISBURG. PA. 



D. of D. 
MAy 7 I9I8 



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J, 

lit 



BUREAU OF MUNICIPAL RESEARCH 
NEW YORK 



June 1, 1917 

Mr. E. L. McColgin, Secretary, 

Harrisburg Chamber of Commerce, 
Kunkel Building, Harrisburg, Pa. 

Dear Sir: 

In compliance with the instructions of the Harrisburg 
Chamber of Commerce, we have made a survey of the organi- 
zation and administrative methods of the city's school system 
and beg to submit our report herewith. 

Very truly yours, 

(Signed) Herbert R. Sands, 

Director of Field Work. 



CONTENTS. 

Page. 

Introduction and summary, 7 

General Administration 8 

Construction, Maintenance and Operation of Buildings, . . 10 

Finances and Accounts, 11 

Purchase, Storage and Issuance of Supplies, 11 

I. — General Organization and Functions of the Board of School 

Directors, 13 

Actions of the Board and Committee Analyzed, 22 

General Criteria of the Work of a Board of School Direc- 
tors, 28 

Criticism of the Organization and Procedure of the Board, 31 

The Budget as a Means of Control and Publicity 42 

II. — Construction, Operation and Repair of Buildings, 53 

Construction, 53 

Business Methods Relating to Construction Work, 60 

Engineering Features of School Plants, 61 

Repair and Operation of Building, , 68 

Repair of Buildings and Equipment, . 68 

Janitorial Care and Operation of Buildings, 80 

Some Conditions in Buildings Which Should be Remedied, 95 

III. — Purchase, Storage and Issuance of Supplies, 99 

Organization, 99 

Purchasing, 101 

Stores, 115 

IV. — Finances and Accounts, 121 

Organization, 121 

Present and Proposed Accounting Systems, 125 

Revenues and Revenue Accounting, 138 

Expenditure Documents (Other than i Payrolls), 152 

Payrolls and Payroll Accounting, 161 

School Debt, 169 

Auditing 179 

V. — Teachers' Retirement Fund, 180 

Appendix "A, " 183 

Appendix 'B," 186 

Appendix "C," 208 



Introduction and Summary 

Scope and Method of the Survey 

This report deals with the organization and the proced- 
ure followed in administering the physical and business func- 
tions, and in providing for the general regulation and control 
over all of the activities of the school district of Harrisburg. 
While no inquiry was made into the work methods of the dif- 
ferent educational services, i. e., instruction, medical inspec- 
tion, enforcement of attendance, etc., yet the general organiza- 
tion for the administering of these services and the relation 
thereof to the business and physical administration of the 
schools has at all times been taken into account. Both the criti- 
cisms and recommendations of this report are made in the light 
of what is deemed necessary in order to produce a well bal- 
anced and regulated school system for Harrisburg. Due to the 
limit of the scope of the survey, this report necessarily gives 
much consideration to the construction of buildings, purchase 
of supplies, maintenance of accounts, rendering of statements, 
etc. However, it is realized that no school system exists only 
for these particular purposes. The real and primary object of 
any school system is the provision of efficient instruction for the 
children of the school district. With this in mind, therefore, 
any form of organization or procedure in connection with the 
general control, the business, or the physical administration of 
the school system which tends to inhibit, retard, or to make 
less important the real end and aim of the schools, has been 
criticised. 

In securing the information upon which this report is based, 
the minutes of the board for the last five years (1912-16) and 
the minutes of each committee from January 16th to March, 
1917. were studied intensively. The minutes of the board and the 
four committees for the months October and November, 1916. 
were carefully analyzed and the different actions were tabulated. 
At least one meeting of the board and each of its committees 
was attended during the period of the .survey, February 13th- 
March 24th. 

7 



A careful study was also made of the organization and func- 
tions of the school system as set forth in the state education 
laws and the rules and regulations of the board. Each of the 
three members of the survey staff in Harrisburg was in daily 
contact with either the president, certain members of the board, 
the secretary or the superintendent. More than three-fourths 
of the school houses were visited where the building and the 
operating plants were inspected and conferences held with the 
respective principals and janitors. 

The findings and recommendations of this report were dis- 
cussed and approved in a conference between members of the 
survey staff, the civics committee of the Harrisburg Chamber of 
Commerce, and the president, superintendent, secretary and 
chairman of the finance committee of the board of school direc- 
tors. 

The Bureau of Municipal Research desires to make a matter of 
record its appreciation of the splendid co-operation which was 
given the survey staff continuously throughout the conduct of the 
survey by each and every official and employee of the school 
system. Such co-operation was at all times given zealously and 
in many eases at the sacrifice of their own time. 

General Administration 

The present organization and procedure obtaining in the Har- 
risburg school district by means of which the provisions of the 
state school law are carried out has developed (1) in accord- 
ance with statutory restrictions and prescriptions, and (2) by 
accretion rather than as the result of constant readjustment of 
the old organization or a realignment of functions in order to 
accommodate the several new and increasing activities. 

That the responsibility for the conduct of the school system is 
at the present time widelj^ diffused among the board, commit- 
tees, members of the board, secretary, superintendent, etc., is 
largely ascribable to the present state law which does not ex- 
pressly permit the superintendent of schools to be the real re- 
sponsible leader of the school system. 

In spite of the fact that during the last ten years the expendi- 
tures of the system have grown 100 per cent, the school popu- 



lation nearly 25 per cent, and many new activities have been 
added, there has been no appreciable corresponding change 
either in the number of, personnel of, or in the practices fol- 
lowd by the central office staff. The effect of this has been 
that (1) responsibility has been diffused among the several 
executives and board officials, (2) the central office staff has 
been greatly overworked, (3) it has not been possible to secure 
proper information upon which to base administrative policies. 

The board, its committees or the individual members as well 
as the executive staff are most conscientious and zealous with 
respect to their Avork, in fact the willingness of each official to 
take a practical part in the administration of the schools is in- 
deed extraordinary. There is a tendency on the part of all to 
"volunteer" their services and to perform functions for which 
the others should be held wholly responsible. Thus we find that 
the board or its committees, or its principals, have assumed 
functions which should be performed by their executives. Secre- 
taries keep records and render statements which should be the 
duty of the treasurer or the superintendent. The direct result 
of this has been that (1) prompt, definite and responsible action 
has been lacking, (2) the paid experts have been ignored in the 
initiation of plans and the execution thereof. 

In criticising the general organization and procedure of the 
board, its committees and executives, certain principles or stand- 
ards for the organization of their work are laid down in this re- 
port. Briefly, these principles, which it is believed will make 
for efficient and responsible administration, are as follows : 

1 — The executive direferably one executive) should be re- 
sponsible for the initiation and the execution of plans. 

2 — The board should be responsible for the critical review and 
appraisal of the plans and work of the executives. 

3 — The board is accountable at all times to the electorate and 
therefore should keep it constantly informed. 

"Wherever the findings of the survey indicated that the present 
general organization deviated from the above principles, such 
conditions are pointed out and the necessary remedial measures 
are indicated. 



In brief the major recommendations with reference to the gen- 
eral administration are — 

1 — That the committees of the board be abolished. 

2 — That a dual executive system be established (until proper 
legislation can be secured by virtue of which the superin- 
tendent of schools wdll become the chief executive). 

3 — That the board modify its procedure so as to be able to 
consider only the essentials of the school administration, 
and that it give more attention to the reports of its chief 
executives. 

4 — That the board adopt a more scientific form and definite 
procedure with regard to the making of its budget. 

5 — That the administrative year be made coterminus with the 
fiscal year in order for the people of the school district to 
be able to place responsibility for failures or successes of 
any one school administration. 

Construction, Maintenance and Operation 
of Buildings 

The survey discovered that the building problem of the board 
has not been handled on the broad lines warranted by the mag- 
nitude and importance of this subject: 

1 — Too many small cheap buildings have been built. In some 
parts of the city these are located in close proximity to 
one another. 

2 — Standards of construction have been years behind the 
times. 

3 — The financial program of the board with reference to new 
construction does not seem to have been well propor- 
tioned to the resources of the city. 

4 — The board has taken upon itself responsibility for certain 
technical phases of construction instead of delegating 
such matters to technically trained men and holding 
them responsible. 

10 



Better supervision over the repair and operation of buildings 
is greatly needed. It was found that the administrative pro- 
cedures relating to this phase of the board's management prob- 
lem present much opportunity for improvement. Here also the 
board has been assuming responsibility for the solution of cer- 
tain technical matters which it is not qualified to assume, while 
other phases of plant care and operation, the study of Avhich 
would undoubtedly result in substantial economies, have been 
neglected. 

The present organization of the board is not well adapted to 
cope with the problem of building management, which involves 
an annual expenditure of over $65,000. The chief recommendar- 
tion of the report bearing upon this subject is that a competent, 
broad gauge superintendent of buildings and grounds be em- 
ployed. 

Finances and Accounts 

The chapter on ''Finance and Accounts" briefly describes the 
present bookkeeping methods, discusses them critically, and 
sets forth definite recommendations for an adequate accounting 
system. The chapter is largely critical for the reason that the 
present methods are so woefully inadequate. It shows that in 
failing to maintain a general ledger and other subsidiary rec- 
ords necessary to produce complete operating statements and a 
balance sheet, the board lacks much of the current information 
almost essential for efficient administration of the school dis- 
trict. It likewise shows that the present situation presents no 
complication but what can be easily corrected. The solution is 
the adoption of a comparatively simple system of accounts, sim- 
ilar to that found in progressive municipalities and corpora- 
tions. Such a system is fully described herein. 

Purchase, Storage and Issuance of Supplies 

The purchase, storage and issuance of supplies presents a 
problem large enough to warrant consideration in a separate 
chapter. Considering the lack of sufficient help and storage- 
facilities, the serious inconvenience resulting from certain feat- 

11 



ures of board administration, and other handicaps, the pur- 
chase, storage and issuance of supplies has, in general, been 
fairly well managed. There is, however, need for much improve- 
ment and it is therefore the purpose of this chapter to present 
in detail the defects, showing at the same time both the ex- 
pense and inconvenience resulting therefrom, and ways and 
means bv which they may be eliminated. 



12 



GENERAL ORGANIZATION AND FUNCTIONS 
OF THE BOARD OF SCHOOL DIRECTORS 

Outline of General Organization. 

According to the state education laws of Pennsylvania 
"every city, incorporated borough or township constitutes a 
separate school district." The school district of Harrisburg is 
one of the second class,* having a population of 72,000 — 1910 
census. 

The state education law states that a school district is a body 
corporate, the affairs of which are supervised and controlled by 
a board of school directors who "shall establish, equip, furnish 
and maintain .... elementary schools and .... additional 
schools and departments for the education and recreation of the 
persons residing in such districts." In order to provide for an 
official- staff the law specifies that the board "shall annually 
elect a secretary, treasurer, tax collector and a district superin- 
tendent (superintendent of schools) and may appoint a solicitor 
and such other appointees, clerks and employees as it may deem 
proper." 

It is under the above general provisions of the state educa- 
tion law that the Harrisburg school district is organized, di- 
rected and controlled. The board of school directors of Harris- 
burg is composed of nine members, three elected Menially at 
large who serve for a term of six years. At the present time 
the work ,of the district is performed by a supervising and 
teaching staff of some 330, and officers, clerks and other em- 
ployees numbering about 50. The total annual expenditure for 
meeting the current needs in 1916 was approximately $600,000. 

♦School districts are divided into four classes: 

I'St class — those districts having a population of 500,000 or more; 
2d class — those districts having a 'population of between 30,000 and 
50,000; 

3d class — those districts having: a population of between 5,000 and 

30,000; 
4th class — ^those districts having- a population of less than 5,000. 

X3 



This sum was applied to the instruction and welfare of some 
12,000 pupils. 

The organization of the district may be said to consist of two 
groups of officials — (1) the legislative organization, i. e., the 
board and its committees; (2) the executive organization, i. e., 
the officers and executives of the board. These groups are con- 
stituted as follows: 

Legislative organization consists of the board of school direc- 
tors — 9 members. The organization of the board is as follows : 

Committee on finance — i members and president ex officio. 
Committee on buildings and grounds — 4 members and 

president ex officio. 
Committee on text books and supplies — 4 members and 

president ex officio. 
Committee on teachers, examinations and transfers — 4 

members and president ex officio. 
Retirement board — 2 members of the board, 2 members of 

the teaching staff, and president ex officio. 

Executive organization consists of — 

Secretary. 

Treasurer and collector. 

Solicitor. 

Superintendent of schools. 

General repairman. 

This organization with its administrative relations is graphi- 
cally set forth in chart No. 1. 



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CHART 2 
ENT ORGANIZATION OF THE COMMITTEEl S FOR ADMINISTRATIVE CONTROL 
THE OFFICERS AND EXECUTIVES OF THE BOARD OF SCHOOL DIRECTORS 
CITY or HARRISBURG, PA. 


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Committees of the Board* 

According to the rules and regulations of the board, the 
principal functions of the committees are distributed as fol- 
lows : 

1 — Committee on finance. 

Settles the accounts of the tax collector and the treasurer 
and reports thereon to the board. 

Submits to the board estimates of receipts and expendi- 
tures for the ensuing year. 

Suggests changes necessary in the financial procedure of 
the district. 

Receives, examines and expresses judgment as to payment 
of bills and claims against the board. 
2 — Committee on buildings and grounds. 

Has general supervision of all school buildings and grounds 
of the district. 

Inquires into the sanitary condition of buildings and sug- 
gests measures relative to the safety and health of the 
pupils and teachers. 

Inspects buildings with regard to repair needs and the ac- 
ceptance of repair work. 

Recommends awards and contracts for construction work. 
3 — Committee on text books and supplies. 

Has general supervision over the purchase, storage and is- 
suance of all text books, supplies and equipment. 

Makes the inspection to ascertain the conditions and usage 
thereof. 

Recommends awards and contracts for supplies and equip- 
ment. 
4 — Committee on teachers, examinations and transfers. 

Has general charge of the examination, transfer and dis- 
cipline of pupils. 

Equalizes wi'th the superintendent the distribution of pu- 
pils in the district and fixes their classification. 

Directs how and by whom examinations may be conducted, 
passes upon qualifications of pupils for promotion and 
gradation. 

♦In Chart No. 2 are indioated the administrative relations which the 
committees bear to the several officers or executives of the board. 

17 

C of C — 2 



Has general supervision over the work of the medical in- 
spection and the attendance departments. 

Executives of the Board. 

1 — Secretary. 

Attends the meetings of the board and its committees, and 
performs all secretarial duties in connection with such 
meetings. 

Has custocly of the records, documents, etc., of the board. 

Prepares annual and other periodical financial and satis- 
tical reports. 

Maintains the accounts of the district, prepares payrolls 
and acts as paymaster. 

Prepares and signs orders on the treasurer. 

Maintains accounts with the treasurer and the school tax 
collector. 

Prepares the school tax duplicates for the district. 

Has general supervision of all the business affairs of the 
district, issuing all orders for work to be done and ma- 
terials or supplies to be furnished. 

Maintains a list of the non-resident pupils. 
2 — School tax collector and treasurer. 

Is responsible for the receipt, custody and ,disbursement of 
all school funds, including the state school appropria- 
tions. 

Reports monthly to the board relative to receipts and dis- 
bursements. 
3 — Solicitor. 

Furnishes legal opinion and advice to the board. 

Approves contracts and bonds issued. 
4 — General repairman. 

Makes and directs such repairs and improvements as are 
ordered by the board through the secretary. 

Reports monthly to the board and submits annual state- 
ments on the condition of school property, suggesting 
such repairs and improvements as are necessary. 
5 — Superintendent of schools. 

Has entire supervision of the public schools of Harrisburg. 

18 



Visits schools, investigates cases of misconduct of pupils, 

complaints of teachers and parents. 
Has general supervision of the promotion of pupils, their 

health and the enforcement of the compulsory education 

and the child labor laws. 

The Board at Work. 

The board of school directors holds reglilar meetings on 
the first and third Friday of each month, excepting in the sum- 
mer when regular meetings are held on the first Friday of July 
and the third Friday of August. During the year 1916 the 
board of directors held two special meetings. The extent to 
which the board has been holding special meetings has tended 
to diminish within the last five years. This is probably due to 
the fact that the number of meetings of the committees has in- 
creased, as is shown in tables 2-a and 2-b and diagram. The at- 
tendance of the members at the meetings of the board has been 
uniformly good, the percentage of attendance during 1916 being 
90.2. 

These meetings last on the average from two to two and one- 
half hours. No calendar of the meeting is prepared for the 
members ; the matters to be considered in the meetings are an- 
nounced seriatim by the secretary. Reports of the committees 
are set forth in the form of resolutions and each member is pro- 
vided at the meeting of the board with a copy of each report. 
On the reading of each report the board votes on the adoption 
of these resolutions. It is a rare exception if the reports of the 
committee are not approved by the board. Communications are 
also read by the secretary. 

It was formerly the custom for the secretary to read each and 
every bill to be approved hy the board. This meant that the 
board was compelled to listen to some one hundred to one hun- 
dred and twenty items of expenditures. At the present time 
these items are summarized under the appropriation titles and 
the totals are approved. Each member is provided with a copy 
of the monthly reports of the treasurer (receipts and disburse- 
ments, appropriation balances, etc.). These reports are read by 
the secretar3^ Monthly reports of the superintendent are refer- 

19 



red to as having been presented, but they are not read, neither 
are the members furnished with copies thereof. 

The members of the board are seated at separate desks ar- 
ranged in a semi-circle located opposite and somewhat removed 
from the president. The whole arrangement is one which, while 
it admits of a better control by the president in maintaining 
order and decorum, appears to engender such a sense of august- 
ness and dignity as might tend to prevent full and free discus- 
sion of matters w^hich come before the board for decision. On 
the other hand, members are in the habit of rising and address- 
ing the chair in a strictly parliamentary fashion on subjects 
which many times are of little significance. 



The Committees at Work. 

During 1916, the committees of the board held meetings 
on the average of about once a month. The attendance at the 
several meetings differs greatly. Thus, the attendance of the 
committee on teachers, examinations and transfers was not so 
good as the attendance at the meetings of the other three com- 
mittees. These facts are shown in the table following: 

Table 1. 

Table Showing Attendance at Board and Committee Meetings 
Held During Year 1916. 



O g 



° be ° ^ 

MEETING ^ -5 I ^ 

S O) CO) 

Board 24 9 

Finance connnittee ... 14 4* 

Committee on text books 

and supplies 14 4* 

Committee on buildings 

and grounds 16 4* 

Committee on teachers, 

examinations and 

transfers 13 4* 

*Not including- president as ex-offlcio m 

20 





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216 


195 


90.2 


56 


49 


82.5 


56 


49 


82.5 


64 


54 


84.3 



52 

ember. 



41 



79. 



lu the above table it is to be noted that the attendance at 
none of the committee meetings is as good as that of the board, 
and that the attendance at the meetings of the business com- 
mittees (finance, buildings, supplies) is better than that of the 
education committee (committee on teachers, examinations and 
transfers). 

It may be said that there has been a decided tendency in the 
board to increase appreciably during the last five years the 
number of committee meetings. This has been probably due to 
the fact that increase? in the board's business has been such that 
more committee action was deemed necessary, or that the mem- 
bers of the board felt that a closer supervision should be main- 
tained over the executives and the activities of the school district 
by means of more frequent committee meetings. The extent to 
which the board and its committees have met during each year 
of the last five years is shown in Tables 2-a and 2-b. 

Table 2-a. 
Number of Meetings of the Board and Its Committees. 

MEETING 1912 1913 1914 1915 1916 

Board of directors, 27 26 29 30 24 

Finance committee 13 12 13 12 14 

Committee on buildings and 

grounds 4 2 3 16 

Committee on text ])ooks 

and supplies 4 14 

Committee on teachers, ex- 
aminations and transfers. 3 4 10 10 13 



Total number of meetings 47 44 52 59 81 

Table 2-b. 
Committee Meetings Summarized Functionally. 

MEETING 

General administration .... 
Business and physical ad- 
ministration 

Educational administration . 

Total number of meetings 



1912 


1913 


1914 


1915 


1916 


27 


26 


29 


30 


24 


17 


14 


13 


19 


44 


3 


4 


10 


10 


13 


47 


44 


52 


59 


81 


21 











In table 2-b the data is grouped to show the extent to which 
the attention of the board has been directed to the general ad- 
ministration (meetings of the board), the business and physical 
administration (meetings of the finance, building and supply 
committees) and to the educational administration (meetings of 
the committee on teachers, examinations and transfers). 

It will be noted from these tables and diagram that while 
the tendency in the activities along the lines of general adminis- 
tration has decreased, the activities incident to the supervision 
of the executive departments of the board have increased. In 
other words, it may be said that it is becoming more and more 
the tendency of the board to pay attention to the particular 
details of administration rather than to the general or legisla- 
tive features. 

With the exception of the meetings of the teachers' commit- 
tee, the general characteristic of these committee meetings is that 
they deal largely with the direction of the executives in carrying 
out the details of their work and responsibilities. It was ob- 
served that the secretary asked permission to have certain things 
done which by the nature of his own work should have been his 
responsibility. Thus, it is the habit of the supply committee to 
pass on such matters as the following: the authorization of hav- 
ing clocks repaired, supplying waste baskets, purchase of a 
wheelbarrow, rem'oval of a piano, purchase of cleaning com- 
pounds and of six cupboard locks, etc. 

The tendency of the committees to go into the administra- 
tive details of their officers and executives is even more evident 
from the fact that in many cases a member is appointed as a 
subcommittee to see that the work is performed or to inspect 
work already completed. 

Actions of the Board and Committees Analyzed 

Sources of the Items Acted Upon hy the Board and the Com- 
mittees. 

Besides a very careful analytical study of the minutes of 
the board for the past five years and the miniTtes of the com- 
mittees for the past year, this survey included an intensive an- 
alysis of the actions of the board and its committees during the 

22 



DIAGRAM SHOWING 

NUMBER OF MEETINGS DEVOTED TO THE DIFTERENT PHASES OF 

SCHOOL ADMINISTRATION. I9I2-I9I6 

CITV OF HARRISBURG. PA. 




Number 


of 


Number of 


Meetin 


g-s 


Items 


4 




56 


3 




12 


3 




35 


3 




18 



months of October and November, 1916. These two months were 
taken because the number of meetings, the attendance and the 
amount of business transacted seemed to be more typical of the 
present practice than any other similar period of recent date. 
The analysis had to do with the business of sixteen meetings 
(eight in October and eight in November) at which 140 distinct 
"items" of business (as itemized by the secretary) were taken 
up. The items and number of meetings were distributed 
among the board and its committees as follows: 

Table 3. 
Number of Meetings and Items Considered Thereat. 



Board of directors 

Finance committee 

Committee on buildings and grounds 
Committee on text books and supplies 
Committee on teachers, examina- 
tions and transfers 3 19 

Total 16 140 

The following tabulation was first prepared, setting forth the 
analysis of these items in order to show the sources from which 
they originated: 

Table 4. 
Sources of Items — October and November, 1916. 



MEETING „ ^^ t, S S =.':?a,2c 

^ O .5 ,3 5! o 

Board 14 2 17 9 .. 2 12 56 

Finance committee .... 7 2 3 12 

Committee on buildings 

and grounds 30 2 3 35 

24 





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2 


17 


7 


2 





Committee on text books, 

and supplies 9 5 1 3 ]8 

Committee on teachers, 

examinations a n d 

transfers 12 3 . . 1 . . . . 3 19 









2 24 


140 


1 





12 


84 



Total board and commit- 
tees 72 14 18 

Total committees 58 12 1 

It is desired to point out some of the most important facts 
shown by a study of this table. 

1 — Over 50 per cent, of the items come from officers or execu- 
tives. 

2 — Officers report both to the committee and to the board. 

3 — Of the 84 items coming from the committee only 17 (20 
per cent) were referred to the board. 

4 — To a certain extent items of business are brought up for 
discussion by members. This is particularly true with 
reference to the meetings of the board itself. 

5 — Of the 84 items acted upon by the committees only 19 (23 
per cent.) had to do with things strictlj^ educational. 

6 — Quite a number of items of business are taken up directly 
with the committees of the board by principals and 
teachers. This is particularly true in the case of the 
supply committee. 

Action Taken By the Conmiittees in. Disposing of Their Business. 

In order to ascertain the extent to which the committees 
are in the habit of (1) issuing orders to executives; (2) dispos- 
ing of items of business in the committee itself; (3) referring 
matters to other committees and the board, etc., the eighty-four 
items coming before the committees were analyzed to ascer- 
tain the kind of action taken by the committees. It will be 
noticed that in order to dispose of these eighty-four items eighty- 
five distinct actions were taken. (This is due to the fact that in 
one case two actions were taken on one item). 

25 



Below is presented a table which sets forth the actions of the 
committees in disposing of these items, classified according to 
the committee in question and the kind of action taken: 

Table 5. 
Actions of Committees in Disposing of Items. 



COMMITTEE 



<U O 



<; to 



U 1^ 
5) 3 



60t ^^ 



Finance Committee 

Committee on Buildings 

and Grounds 27 

Committee on Text Books 

and Supplies 7^ 

Committee on Teachers, 

Examinatio n s and 

Transfers 2 



Total 36 

^Two actions on one item. 



3 



^ s 

•H b 
'O 



K 



■C as 
OJ o 

rpq 






H <u 



dU 



3Q 



2 15 25 3 



12 



35 



7 2 19 



1 13 1 19 



There are three important facts which should be emphasized 
with regard to the above table — 

1 — In approximately 30 per cent, of the cases (25 out of 85) 
action of the committee terminated the consideration of 
the matter in hand. 

2 — The percentage of cases in which action of the commit- 
tee terminated the consideration of the matter in hand 
varied greatly as between tjie several committees. 

3 — Nearly one-half of the actions were orders for executives 
or officers to act or to report further. 

4 — It appears that the committee on buildings and grounds 
far exceeds the other committees in the tendency to is- 
sue orders to executives. 
26 



Sources of the Items Acted Upon by the Committee. 

Matters coming before the conmiittee may, roughly 
speaking, come from seven distinct sources. To know the 
sources of the different items with which these commit- 
tees deal is to have some definite idea of the relation of these 
committees to the officers and executives of the board, to outside 
public and private individuals and organizations, and also of 
the interrelations of the committees themselves. In the follow- 
ing table the items are classified with regard to their source as 
well as disposition : 

Table 6. 

Source and Disposition of the Items of Business Disposed of by 
the Committees of the Board — November-December. 191 6- 
Disposition. 



3 O s. 



SOURCE OF ITEMS 



Officers or executives. . . . 
Principals and teachers. . 

Other committees 

Subcommittees 

Members 

Prior meetings 

State, county or city 

lofficials 

Outside private agencies 



?= o2 

O ° 

31 
3 
1 



X <u *^ 

'^ 4) 3 

'Z ^ 9s 

c > I' 



O M M w 






0) o 



11 1 
1 . 
1 . 



. 58 
3 ]2 



o* 



12 



Total 36 3 1 2 15 25 3 85 

*Two actions on one item. 

From this table it is to be seen that — 

1 — The greater number of the items originate witli the of- 
ficers or executives of the board. 

,27 



2 — In most cases where executives refer matters to the com- 
mittees the committees order the executives to act or 
take final action thereon. 

3 — Where committees have ordered executives to act, such 
action on the part of the committee is usually (31 out 
of 36, or 86 per cent.) based on matters which have 
been brought up by the executives themselves. 

General Criteria of the Work of a Board of 
School Directors 

It is deemed wise, before entering on a critical discussion of 
the material which has been presented in the foregoing pages 
relative to the organization and functions of the board of school 
directors of Harrisburg, to set up the standards by which the 
work of the board is to be appraised. It is intended to lay down 
what are considered the fundamental principles involved in the 
management of a public school system by a board of education. 
It is believed that these principles are those upon which the 
most efficient administration of the schools can be based. 

In discussing these principles the board is considered mainly 
in the light of (1) the administrative relations between the 
board and its officers and executives. (2) its responsibility to 
the people of the community. 

The questions which will be discussed are — ■ 

1 — "What functions should be performed by the board. 

2 — What functions should be performed by its executives or 

officers. 
3 — ^How may the board best discharge its duties with respect 

to the system and the community. 

The Board Should Be a Pla)ining and Bevicwing Body. 

In any organization the functions of management should 
be so distributed that they fall in the jurisdiction of those indi- 
viduals or subunits of organization where they will be most 
efficiently performed. In the organization scheme of the school 
system of Harrisburg the board of school directors constitutes 
the local legislative body. It is a board composed of laymen, 
each appointed for a period of six years, who receive no com- 

28 



pensation for their services and who are required to give only 
a comparatively small portion of their time to the duties of the 
position. They are a highly selected group, chosen by the elec- 
torate of the city. They come from representative walks in life. 
They are different in that they have various points of view, in 
some cases a different social or racial background. They are 
alike in that they are ostensibly public-spirited and interested 
in the educational welfare of the community. 

Keeping in mind the above facts, what are the functions 
which can best be discharged by these men? Being unpaid and 
giving part time, the extent to which demands may be made 
upon their time is limited. Being a lay board, they are not ex- 
pected to solve the technical problems incident to the manage- 
ment of the public school system. Being intelligent, respon- 
sible citizens of various viewpoints, thc}^ are a body who may 
reasonably well represent the people of the community in the 
management of the public school system. They are not placed 
there to operate the system ; they are placed there as responsible 
agents of the people to see that the policies followed in the man- 
agement of the system are wise, economical and represent the 
needs of the community. Thus, they are responsible for the adop- 
tion of the ''work plan" or "sailing chart" of the school system. 

Since they are to authorize plans, they should likewise be able 
to review and weigh the results of former plans and to form a 
.judgment on new proposals. Having a comparatively short ten- 
ure of office, giving only a small portion of their time, and being 
a lay body they are not expected to execute the plans. They 
are, hoM^ever, charged with the responsibility of employing com- 
petent executives whose duty it is to propose and carry out the 
plans. Being responsible for the adoption of plans, they cannot 
delegate this responsibility to others ; but holding their executives 
responsible for proposing and executing plans once authorized, 
they should not interfere in any way with their executives. 

Executives Slioidd Be Besponsible for the Initiating and Carry- 
ing out of Flans. 

In the last analysis the board is dependent upon its 
agents, i. e., executive officers, for conducting efficiently the ac- 

2 9 



tivities of the school system. Having chosen these executives 
as persons reliable and competent to perform their respective 
functions, the board has thereby expressed its confidence in their 
abilities. These executives are chosen to carry out the policies of 
the board and to advise the board with respect to new plans, 
necessary adjustments, or abandonment of old plans. Anything 
which the board or a member thereof may do that relieves the 
executive of any of these responsibilities will tend to place this 
responsibility either wholly or in part where it does not belong, 
namely, on the board itself. If the board assumes the responsi- 
bility for carrying out its own policies, it puts itself in the 
illogical position of being forced to review its own acts. 

The efficiency with which the executives carry out the plans 
of the board will depend upon the care and intelligence with 
which the plans are made and the executive reports are reviewed 
by the board. In order to make possible a careful and an in- 
telligent review of the acts of the executives, it is necessary to 
see to it that their reports are frequent, prompt and adequate. 
It is by means of sound reporting methods that the board will 
be able to .judge the work of the executive and to enforce re- 
sponsibility. 

The Board Accountable to the Cormnunity. 

School buildings, funds, and all facilities of the schools 
belong, not to the board, but to the people of the community. 
The board acts only in the capacity of trustee and it is incum- 
bent jipon it periodically to account to the people for its trus- 
teeship. This accounting should be frequent, intelligible and 
comprehensive. The school administration should, moreover, be 
so organized that the responsibilities are definitely located so 
that a definite accounting can be made. Not only should the 
community be able to appraise the work accomplished by the 
school system, but it also should be taken into the confidence of 
the board with regard to the plans for future work. Particu- 
larly should the community be informed as to the detailed cost, 
the probable benefits and administrative difficulties, etc., of the 
proposed work of the district. 

30 



Criticism of the Organization and Procedure 
of tne Board 

The Board Has Delegated Its Power to Minority Groups. 

In the previous discussion it has been shown that the com- 
mittees have been largely concerned with the direction of de- 
tails of administration. It was shown that not only did most of 
the items of business originate with the executives, but that in 
disposing of these items, these executives were ordered by re- 
spective committees to act. Another fact should be kept in mind, 
namely, that even where the committee does not act but recom- 
mends that certain actions be taken by the board, it nearly 
always happens that the board approves the findings ana rec- 
ommendations of the committee. The practical effect of this sit- 
uation is that the committees are acting to a great extent in an 
executive capacity, and the administration has become decid- 
edly bureaucratic. The situation has a further significance. 
These committees are in each case a minority group of the board 
since the committees are composed of four members. It is true 
that the president is also ex officio a member of each committee, 
but in recent times the records show that the president attends 
but a very small percentage of the committee meetings. Thus it 
is evident that minority groups of the board are directing cer- 
tain activities of the board, and the board is uniformly adopting 
the reports or recommendations of minorities of its membership. 

The Committees Assiwie Quasi-Executive Functions. 

It is noticeable that: (1) the committees insist on direct- 
ing the executives in their work; and (2) the committees refer 
administrative details to subcommittees. In table 5 it was 
pointed out that in coming to a final decision in respect to busi- 
ness which came before them, the committees in practically 
three-fourths of the cases made final disposition of the matters 
by either issuing a definite order to an executive officer, or by 
taking final action on the matters. Moreover, it was brought 
out that practically two-thirds of the matters coming before the 
committees came from the executive officers of the board. This 
tendency on the part of the committees was further corroborated 

31 



by all the analyses made of the minutes and by observations at 
the meeting themselves. There was abundant evidonce to show 
that the executives did not feel authorized to go ahead and to do 
things even of minor importance without the consent of the ap- 
propriate committee. Thus we find the secretary asking of the 
supply committee permission to make minor purchases. The 
superintendent must get permission from the teachers' commit- 
tee in order to transfer a pupil, to make minor changes in pro- 
grams of schools, etc. 

Besides assuming the direction of the executives in their 
work, it is frequently the case that subcommittees or that the 
chairman or a member of a committee are authorized to proceed 
and actually supervise the performance of certain administra- 
tive functions of the board. The chairman or members of the 
building committee have been authorized to take personal charge 
of the supervision of certain construction or repair work. In 
one case, the chairman of a committee asked permission to see 
that a particular piece of work was performed. In one case the 
board authorized the chairman together with the secretary to 
see that a certain service was rendered. When it was suggested 
to a janitor by one of the survey staff that he ought to have a 
certain equipment in his schools, he replied: ''I know it. and I 
will get it soon. Mr (a member of one of the com- 
mittees) will get it for me." Recently the superintendent rec- 
ommended the appointment of a certain member of the teaching 
staff to a principalship. In the presentation of his recommen- 
dation he showed the committee that on the basis of training, 
qualifications, character, executive abilitj^, etc., that this candi- 
date was the most acceptable, and that he was ready to be re- 
sponsible for his competence. All except one member of the com- 
mittee concurred in the superintendent's recommendation. In- 
stead of trying to illicit more information from the superintend- 
ent relative to his proposal or of placing the responsibility of the 
choice directly upon the superintendent, the dissenting member 
of the committee expressed his desire to talk to the candidate 
himself before he was willing to agree with the superintendent. 

It is believed that this practice of having committees and in- 
dividual members of the board assume immediate direction over 

32 



certain of the details of administration is a relic of the time when 
the board consisted of thirty-two members and when, due to 
election of wards, each member felt that he should have some 
intimate relation with the activities and the provision of school 
facilities in his ward. Somewhat like members of a volunteer 
fire department, each member felt that he should either do or 
direct some of the details connected with the provision of edu- 
cational facilities in his ward. Volunteer fire departments have 
given way to expert and trained fire-fighting organization. The 
Harrisburg board of school directors was likewise reduced in 
number undoubtedly with the purpose of securing an official 
body which would direct and hold responsible an organization 
of experts to do the work which formerly had been done to such 
a great extent by "volunteer service." 

It is, however, believed that the practices of the old larger 
board have not wholly disappeared, and that the old tendencies 
of volunteer and lay direction instead of responsible expert ac- 
tion are being perpetuated in the present committee system of 
the board. 

Committee System a Positive Hindrance to Prompt and Respon- 
sihle Executive Action. 

It has been pointed out in previous discussion that in re- 
ality the affairs of the board are being carried out by minority 
groups, viz. : the committees. Furthermore, it has been made 
apparent that these committees either as committees or as indi- 
viduals not only direct the executive officers, but follow the prac- 
tice of actually performing some of the executive functions them- 
selves. In theory and in fact the effect of this organization and 
procedure has been to make a division of responsibility and to 
limit the executives in their initiative. Another effect which 
this form of administration has had on the business procedure 
of the board is that it has built up a procedure which is wasteful 
of the time of both the members of the committees and the ex- 
ecutives. Instances bringing out this fact are cited at this point. 

Since it is the practice of the executives to go before the ap- 
propriate committee with matters on which decision is to be 
made and that this committee in many cases must refer the raat- 

33 

C of C — 3 



ter to the board we find invariably that the matter must be 
taken up twice. Thus, the superintendent on one occasion de- 
siring to have a change made in the salary schedules of teachers 
took the matter up in great detail with the committee on teach- 
ers, examinations and transfers. This committee, after hearing 
his presentation, recommended it favorably to the board at the 
subsequent board meeting. The superintendent then took up 
the question de novo as he had done at the committee meeting. 
While it is not suggested that full and intelligent discussion 
should not be had on such matters of policy, yet it is evident 
that in this and similar cases the matter could have been just 
as fully and as intelligently considered at the board meeting 
as it was at the two meetings. What virtually happens in all of 
these cases is that there are two presentations to the meinber- 
ship of the board, one to inform four or five members (the com- 
mittee), the other to inform the remaining members of the board. 
In the second instance we find half of the board listening to 
matters the details of which are already known to them. 

If at the present time the superintendent wishes to establish 
or change a course of study the matter must first be presented 
to the committee on teachers, examinations and transfers for 
general approval. Then in order to secure the text books the 
matter has to be referred to the committee on text books and 
supplies. Then in order to secure final approval the matter is 
referred to the board as a whole. 

At the meeting of the board, December 1, 1916, the secretary 
stated that he had made two futile attempts to get the finance 
committee together in order to audit the bills (according to the 
procedure of the board), so that they might be presented at that 
board meeting. Due to the failure of the finance committee to 
act on these bills, it was the secretary's suggestion that they 
should be taken up under ' ' new business ' ' at the board meeting. 
While this instance does not indicate that any delay had re- 
sulted, it is evident that committee action on all matters must 
be at times omitted in order to secure prompt action. In this 
particular case it is believed that such bills should not be audited 
either by the committee or by the board, but by the officers or 
the executives of the board. 

34 



Prompt, decisive action shoiilcl at all times be possible with re- 
spect to matters which affect the work program of the executive 
officers. It is not possible for a committee meeting at intervals 
during a month to anticipate the emergencies which may arise in 
the interim. ^Moreover, it is not right that the chairman of the 
committee should be called on incessantly between committee 
meetings for decisions. Such a system as the present one does 
not admit of day-to-day planning and adjustment of the work 
of the district so that delays can be forestalled. 

The Board Should Act as a Unit. 

The delegation of the responsibilities of the board to dif- 
ferent groups of board members always tends to specialization of 
interest among the membership of the board. The effect of such 
specialization is that some of the members of the board may 
lack contact and perspective with regard to the business of the 
board as a whole. Thus a member whose interests are directed 
to supplies, buildings, etc.. of the board is apt to underestimate 
the problems of the educational committees, and vice versa, those 
who are thinking of the educational needs and welfare of the 
system are likely to leave out of consideration the financial and 
physical features of the school administration. This is partic- 
ularly true with respect to the chairmen of the committees who 
in most cases have assumed a ciuasi-executive attitude to the field 
of interest to which they have been assigned. 

It has been shown that by parceling out the work of the board 
to the different committees : 

1 — The board receives and (usually) acts upon minority re- 
ports. 

2 — Half of the membership of the board is often compelled to 
go over the same ground twice. 

3 — The executives are often compelled to waste time by pre- 
senting the same matter twice. 

4 — Responsibility for executive action is diffusec\. 

It is believed that matters which are important enough as to 
cause detailed discussion in committees should be the subject 
of discussion before the board as a whole. Every member of 



the board has a right and ought to have just as intimate a knowl- 
edge of all of the transactions of the board as any other mem- 
ber. If items are assigned to committees because they are unim- 
portant then it is believed that the time of the committee mem- 
bership is taken up unnecessarily and that such items, usually 
being administrative in character, should be the subject of re- 
sponsible executive action. 

It is therefore recommended that the committees of the board 
be abolished and that as a consequence all of the details of ad- 
ministration now being supervised by the committees be as- 
signed to the executives and that the board interest itself only 
with the larger matters of policy. Since the abolition of com- 
mittees is predicated on radical changes in procedure it is deemed 
wise to discuss these changes at length. 

Desirability of the Board Giving More Attention to the Reports 
and Reporting Methods. 

If committees are abolished it will be necessary for the 
board to see to it that they have at each of their meetings cur- 
rent information with reference to the activities carried on by 
each one of their executive officers. It is evident that hereto- 
fore the board has had little regard for the form and adequacy 
of the reports of the various officers. 

Once a month a report is made by the general repairman re- 
garding the work which he has completed during the past period. 
In this report is set forth merely a description of the work 
done and the location thereof. The board should know a great 
deal more than is contained in these reports. Such information 
as the estimated cost of the job as determined at the time of 
the preparation of the budget, the difference between the esti- 
mated cost and the total cost, the units of Avork accomplished, 
the amount of material used and labor applied to date, the 
estimated cost at completion, the present status of the work, 
etc., should be included. 

In the section on "Finance and Accounts" of this report, the 
fact is brought out that the statement of appropriation bal- 
ances is not only misleading in that it does not show the unen- 
cumbered balances but also that the report comes from the treas- 

36 



urer instead of the secretary, the officer who is supposed to main- 
tain and render statements relative to the appropriation ac- 
counts. 

The fact that even before the year was half done several of 
the accounts have been everdrawn, is evidence that either the 
board has continued to be misled by these reports on the appro- 
priation balances or that no attention has been given them. The 
use of a proper statement of appropriation balances in con- 
nection with the possible control through the budget is dis- 
cussed in a later section. 

The superintendent renders to the board monthly a report 
showing the fluctuations in enrollment, attendance, number of 
teachers, number of transfers, number withdraAMi, etc. While 
this report not only lacks data of former months and the past 
year with which the present data may be compared, yet as a 
statement of the current conditions of the school service it pre- 
sents a mass of information which should be carefully studied 
by the board as well as interpreted by the superintendent. The 
practice followed with regard to this report, however, is that it 
is received and tiled along with other reports from the medical 
inspector, the chief attendance officer and other special super- 
visors. It is suggested that not only should there be some writ- 
ten interpretation of the reports of the superintendent and his 
subordinates by the superintendent but that such reports should 
be included in the minutes. There is no doubt but that data 
which shows the trend of the school services from month to 
month is of sufficient importance both to the school board and 
to the public as to be set forth in the minutes. 

Bow the Board May Save Time and Consider Only Essentials. 

The board should devote its attention to essentials. If it is to 
exercise proper control over its executives, it can not spend time 
in dealing with details. It should exercise its functions of re- 
viewing and planning, leaving administration of the service to 
expert and responsible executives. 

If the board is to take a definite stand and -face about in this 
matter, more care is needed in the preparation of calendars 
of the meetings. Indeed a different procedure must be adopted. 

37 



As it is now, board members come to the meeting Avithout pre- 
vious knowledge of many of the questions and matters that are 
about to come before the meeting. As a result much initial ques- 
tioning and discussion ensues merely that some members of the 
board may get the fundamental facts relating to the subject 
for consideration. Moreover, it has been the habit, both of the 
committees and the board, to bring up for consideration items 
received up to the moment the meeting is called or even during 
the meeting. Members should have more opportunity to secure 
information before the meeting with a view to intelligent dis- 
cussion at the meeting. 

It is therefore recommended that a calendar for each meeting 
of the board be prepared by the secretary and that each member 
be sent a copy of the calendar at least twenty-four hours before 
such meeting. So far as practicable, it would be well to enforce 
a rule that no report or communication be taken up unless it is 
received at the office of the secretary in time to be included in 
the calendar. Each item of the calendar should be a concise 
statement or an abstract of the matter to be discussed. Long 
lists of names should not be included but referred to, for ex- 
ample, as the "list beginning with John Doe and ending with 
Richard Roe." In other words, the calendar should be brief, 
but informative. Reference might be made to execuiTve reports 
which should also be in the hands of the members at least twenty- 
four hours before the meeting. 

This calendar should be prepared in two sections, which may 
be designated respectively as Calendar "A" and Calendar "B." 
Calendar "A" should contain those items which are of a non- 
routine nature, which will demand more or less deliberation. 
Calendar "B" should contain relatively unimportant or rou- 
tine items and the responsibility for which rests with the execu- 
tives. 

Any item of Calendar "B" should be transferable to Calendar 
"A" on the request of a member of the board. In taking up 
the business of the meeting Calendar "B" should be disposed 
of first and approved as a whole, leaving for further deliberation 
the items (m Calendar "A". 



state School Laws Restrict the Board to a Dual ExecuTWei 
Control. 

The present state law of Pennsylvania virtually pro- 
vides for a dual system of control for school districts of the sec- 
ond class. Thus it shall be the duty of every district superin- 
tendent (superintendent of schools) "to visit personally as of- 
ten as practicable . . . the several schools . . . under his super- 
vision; to note* the courses and methods of instruction and 
branches taught; to give such directions in the art and meth- 
ods of teaching in each school as he deems expedient and nec- 
essary and to report to the board of school directors any ineffi- 
ciency found . . . . " "The district superintendent shall have 
a seat in the board of school directors in the district and the 
right to speak on all matters before the board but not to vote." 
The secretary, on the other hand, "shall have general supervis- 
ion of all the business affairs of the school district subject to the 
instructions and directions of the board of school directors." 

It would appear from these statutory provisions that the mean- 
ing of the law is to set up under the board of directors two dis- 
tinct divisions of the school administration, viz., the educa- 
tional administration and the business administration. Without 
going into the interpretation of these provisions it appears that 
there would be some difficulty if the Harrisburg board of school 
directors attempted at the present tim,e to set up an organiza- 
tion which did not admit of these two separate responsibilities. 
It is due to this situation that for the immediate needs of the 
district and at the same time in order to conform with the legal 
provisions the best recommendation possible is for a dual execu- 
tive organization as graphically set forth in Chart No. 3 here- 
with. It will be noted in the chart of the proposed organization 
that the superintendent and the secretary are made coordinate 
executives under the board and that the general repairman has 
been completely subordinated to the direction of the secretary. 

Dangers of a Dual System of Executive Control. 

The organization recommended for immediate adoption is 
at best double-headed. The result will be that the board will 
have to act in the administrative capacity of directing, coordi- 

39 



nating and reconciling the work of two executives. But it is 
felt that by carefully defining the functions of each officer, by in- 
sisting upon reports that are truly informational and by modify- 
ing other business practices of the board, as recommended 
herein, the difficulties will be greatly minimized. 

The Superintendent of Schools Should Be the Chief Executive. 

If the board of education is to be the planning and re- 
viewing body of the school system, it should so organize the 



CHART 3 
PROPOSED ORGANIZATION or THE SCHOOL DISTRICT 
CITY or HARRISBURG, PA. 



ELECTORATE 



SOLICITOR 



BOARD 

o F- 

SCHOOL DIRECTORS 



COLLEiCTOfi 




S UPEKIN TE.NDBN1 

or 

SCHOOLS 



\SUPSWNTCSDCl 



INSPCCTOai/IL 



INSTffUCTIOM/tL 
ST/>rf 




M£D/CAl. 

/NSP£CTOf>S 



PL/RCH/ISING 



CHICr 
/JCCOUNT/9N T 



CHl£f 

/fTT£f/0/>NC£. 

Of-f-/C£fl 



StJP£ff/NTEND£Nr\ 



*tNT£ND£Nr\ 

or 



J--£~B-/V7^-' 



e£flf£/^/fL. 



system that its full time may be given to these functions. Any 
organization or procedure which tends to make this difficult 
should be remedied. Likewise, if by any arrangement, the board 
assumes or is forced to assume executive direction of the adminis- 

40 



trative details, it is plainly inviting ultimate divisioji of responsi- 
bility with a consequent impairment of efficiency and waste of 
time. 

Under the dual form of organization recommended for im- 
mediate adoption, the board will be forced to make administra- 
tive decisions wherever the two heads are concerned. This will 
happen daily. The centralized form of organization would, on 
the other hand, relieve the board entirely of its administrative 
functions and would thereby centralize responsibility, facilitate 
executive action and reconcile the business and educational work. 
It would give a real executive head to the system. 

Moreover, single executive control is being adopted more and 
more in the administration of public service. In this connec- 
tion one needs only to point to the rapid growth of the com- 
mission manager plan under which an increasingly large num- 
ber of cities in this country are being administered. In this 
way the many and varied municipal activities are brought to- 
gether under one responsible executive head. The principle of 
centralized executive control for the school system is likewise 
not a novelty. In recent surveys of school systems this form of 
organization has been recommended unqualifiedly.* 

It is therefore recommended that the board include in a pro- 
gram of state legislation for 1919 a proposal so to amend the 
state education law that the superintendent of the school district 
of Harrisburg may act as the chief executive of the school sys- 
tem. 

Under such a reorganization there should be an assistant sup- 
erintendent in charge of business affairs and other assistant 
superintendents in charge of educational affairs, as assigned 
by the superintendent of schools. This proposed executive or- 
ganization predicated upon changes in the state school code is 
set forth in Chart No. 3 (that part of the organization which re- 
quires change of present law is designed by dotted lines). 

♦Minneapolis — Civic and Commerce Asso.ciation, 1915; 
Finance Commission of Boston, Mass., 1916; 
Denver, Colo. — School Survey Committee, 1916; 
Portland, Ore. — Committee Tax Payers, 1913; 
Board of Eduication of Salt Lake City, 1916, and others. 

41 



The Budget as a Means of Control and 
Publicity 

Once having set up an organization whereby there is one ex- 
ecutive, the superintendent of schools, who is to be held respon- 
sible for the provision of efficient and economical educational ser- 
vices for the community, many of the administrative and inspec- 
torial functions now exercised by the board, its committees or in- 
dividuals of the board will necessarily have to be delegated to 
him, as a rule, boards of education are reluctant to turn over to 
their executive or executives all of the functions of administra- 
tion. There is a presumption that it is not possible to control 
the work of the school system unless the members ' ' have a hand 
in it." The effect of this, as has been pointed out in the pre- 
vious discussion, is that since the executive or executives are not 
given complete power they cannot be held completely respon- 
sible. It is the conviction of the Bureau of IMunicipal Research, 
based on the findings of this survey, that tlip school district of 
Harrisburg needs : 

1 — A responsible executive. 

2 — An informed controlling board. 

3 — An informed community. 

The present arrangement leaves the board far from a realiza- 
tion of these ideals. Radical changes are required in order to 
bring about the needed adjustments. 

In addition to having the board act as a unit, changing its 
procedure, paying more attention to executive reports, etc., there 
is another phase of the school administration which, if properly 
carried out, will do as much or more than any other one thing 
to correct existing defects. It is the preparation, presentation 
and use of the school budget as an instrumentality for control 
and publicity. 

The Present Budget Procedure : 

In the state education law, section 512, is the statement: "The 
board of school directors of every school district in this com- 
monwealth shall annually, through its proper officers, furnish to 
its incoming school directors all necessary information and such 

42 



detailed statements as may be needed by it to provide for the 
annual tax levy and to prepare an annual estimate of expendi- 
tures." Further, section 536 has the provision that: "In all 
school districts of the second, third and fourth class of this com- 
monwealth the fiscal year shall begin on the first ^Monday of 
Jul}^ each year." In section 546 is the provision that " . . .In 
all the school districts of the second, third and fourth class all 
tax duplicates shall be furnished as herein provided by the tax 
collector on or before the first Monday of July each j^ear. ' ' 

It will be seen that the above legal provisions do not specify 
a definite budget procedure. Presumably, sometime before the 
first ]\Ionda3^ in July, estimates must be made in order to arrive 
at the amount to be raised by the school tax. There is no nu^n- 
tion made of the one who is specifically responsible for the prep- 
aration of such estimates. 

The plan followed in preparing, reviewing and adopting the 
budget by the school district of Harrisburg to-day is, in the 
main, as follows: 

About the middle of Aj)ril each j^ear the secretarj^ assembles 
in his office certain data relative to the needs of the system for 
the ensuing fiscal year. This data comes from several sources, 
viz., superintendent (educational personal services), the board 
(repairs, public library, annual contributions), from the treas- 
urer and the secretary himself (fixed charges and other items). 
Having received advice from the state education department as 
to the probable state apportionment and made guesses as to the 
amount of tuition, interest, etc., which are to be received by the 
school district, the secretary then, on the basis of the assessed 
valuation furnished him by the city clerk, determines what rate 
it will be necessary to levy for the additional amount needed to 
cover the estimated expenditures. Commenting generally upon 
the preparation of the school budget the secretary states: "In 
the matter of getting u]) the budget for the ensuing year very 
little figuring is done except so far as it affects the increases 
that the rules provide for teachers or for increases in the janitor 
force, most of the other items being confined to practically a 
pure guess. ' ' 

4S 



Accompanying this statement of estimated receipts and expen- 
ditures prepared in the above manner is a "statement of con- 
dition at the end of year" showing the estimated deficit (or sur- 
plus), and a ''debt statement," showing the present borrowing 
capacity of the district — all of which are presented sometime 
during the first week in March to the finance committee.* It is 
in this committee that the secretary's estimates undergo change. 
After consideration of these estimates by the finance committee 
resolutions are drawn recommending the tax rate to be fixed for 
the ensuing year and an "estimate of receipts and expenditures" 
therefor to be approved by the board. 

In company with other regular items of business this state- 
ment of probable receipts and expenditures is passed as the 
"appropriation act" by the board, usually without any change. 
Comparing the 1917 estimates presented by the finance commit- 
tee with the budget as adopted for the last five years, it is found 
that only one change was made.* 

Formi and Content of the Budget. 

In the "act" or "ordinance" of appropriation passed by 
the school board there are twenty-two separate appropriation 
accounts or items.** The classification used is not uniform ; some 
of the items represent objects of expenditure (personal service, 
supplies, etc.) ; some represent functions (medical inspection, 
domestic arts, etc.) ; some represent organization units (techni- 
cal high school, open-air schools) ; and some represent funds 
(teachers' retirement fund, sinking fund). 

Taking these twenty-two appropriation items and subjecting 
them to an analysis on the basis of objects of expenditure, we 
find that it is practically impossible to ascertain how much 
money the school district proposes to spend for compensation to 
individuals, for supplies, materials, equipment, etc. respectively. 
In the following statement it will be seen that if one attempted 
to get an idea of how much money would be spent for personal 

*See Appendix "A" for copv of these documents as presented April, 
1917. 

*In the estimates of the ifinance committee for the fiscal veair 1913-14 
the item for teachers' retirement fund was increased from $5,000 to 
$6,000. 

**See Appendix "A." 

44 



services ten accounts would have to be analyzed. Provision for 
supplies occurs in ten, for materials in eight, etc., etc. In other 
words, without an analysis one cannot determine what ' ' things, ' ' 
"commodities" or "facilities" it is proposed to buy with the 
money appropriated. 

APPROPRIATIONS ANALYZED BY OBJECT OF 
EXPENDITURE. 



Appropriation Accounts. t^.H S ~, 

Oh X rt HO 

Salary Superintendent 1 

' ' Secretary, 1 

" Treasurer, 1 

Clerks, 1 

" Teachers, 1 

" Janitors 1 ,. . 

Buildings, 1 1 1 1 

Supplies and Fuel, 1 1.. 1 

Printing, 1 . . . . 1 










H ra 


i-' (V '^ 


or 




■^ aS 


Q.X 


'" " 


'•J-~ 


^Ow 


y.c 


i 


3;^ 



1 


1 


1 


1 


1 




1 






1 




1 


1 


1 





1 


1 


1 



Text Books 

Contingent, 1 

Dental Clinic, 1 

State Tax on Bonds 1 

Interest on Bonds 1 

Sinking Funds, 1 

Technical High School 1 1 1 1 . . 

Public Library 



Domestic Arts High School.. .. 

Open Air Classes 

Medical Inspection, 1 

Teachers' Retirement Fund.. .. 
Tax Collection, 1 



1 


1 


1 


1 


1 


1 


1 


1 


1 



10 ]0 
45 



There are also obvious oniissiuiis in tliis list of proposed ex- 
penditures. One finds for instance, no items relative to the ac- 
quisition of real property — yet this item every year amounts to 
thousands of dollars. Neither does one find provision for the 
payment of temporary loans. This item in 1916 amounted to 
$76,000. 

The estimated receipts are set forth in five accounts, viz., 
"real estate tax," "state appropriation," "personal taxes," "in- 
terest," "tuition." The amount set opposite real estate tax is the 
net amount resulting after deductions are made for abatements, 
exonerations, etc., etc. It is thus not possible to ascertain from 
the budget the amoimt of these deductions from year to year. 
One finds, likewise, no provision made for borrowing on tempor- 
ary loans, yet the board has been facing, and will probably con- 
tinue to face a deficit for a couple more years. Thus the deficit 
estimated for the fiscal year 1917-18 is somewhere between $35,- 
000 and $47,000.* Provision is not made for receipts from mis- 
cellaneous sources, such as: rent, fire losses, sale of supplies and 
equipment, etc., which amounted to nearly $7,000 during the 
fiscal year 1915-16. 

In a school system as large as Harrisburg, where nearly 350 
teachers are employed, there are always changes made in the 
staff in the course of the year. Numerous substitutions will be 
made, in which lower salaried teachers will take the place of 
those who were paid at a higher rate. The effect of such sub- 
stitution is that there will accrue to the district a certain amount 
of money; — in New York City the amount accruing from this 
source has been determined to be somewhat over two per cent. 
Assuming that these accruals will amount to two per cent, of the 
salaries paid teachers during the course of the fiscal year 1917-18 
there should be some $5,000 or $6,000 made available in this way. 
Provided with the new accounting facilities which are recom- 
mended in this report, it will be possible to take an accurate ac- 
count of this item in the future when preparing the budget : 

The Present Budget Not Prepared As a Means of Control: 

Beyond a question of doubt it may be said, with regard 
to the present budget procedure of the Harrisburg school dis- 
trict that : 

*Sep Appendix "A.'" 

46 



1 — It is to a great extent based on guesses. 

2 — It presents a classification so varied that one cannot de- 
termine things which are to be bought, services to be 
rendered, funds to be affected or the extent to which 
money expended is to provide for cvirrent expenditures 
or capital outlays, etc. 

3 — It is prepared by a spending officer who has limited exec- 
utive direction of but a small proportion of the school 
expenditures. 

4 — It is supported by no information relative to unit costs or 
past expenditures with regard to the several items. 

5 — It is in effect finally determined by a committee of the 
board which is not responsible for the services rendered 
or the incurring of expense therefor. 

6 — It is not a complete plan of work or financing. 

The Present Budget Not Used As a Means of Control: 

Even if the budget were prepared and presented in a 
proper way the practice which the board follows in operating 
under it would impair its value as a means of control. 

Having set down by resolution the limitations on expenditure 
it is natural for the board to demand monthly statements show- 
ing the balances available in the appropriations. The fact is, 
however, that after the board has appropriated over half a mil- 
lion dollars no statement as to the condition of the appropria- 
tion accounts is submitted to the board until November 1st, i. e., 
imtil after expenditures have been going on for over four 
months. Furthermore, these statements (due to the lack of a 
proper accounting system brought out in a subsequent division 
of this report) take no account of the orders outstanding. A 
comparison of the estimated with the actual expenditures of the 
fiscal year 1915-16 shows that of the twenty-two accounts thir- 
teen had overdrafts at the end of the year aggregating nearly 
$35,000. 

The Superintendent Shoidd Be Resjwiisiblr for tJie Preparation 
and Submission of the Budget. 

Responsibility in connection with the budget should be 
clearly defined. This document should constitute a plan by 



which the administration of the schools could be guided and to 
a certain extent be limited and restricted for an ensuing period 
of twelve months. It should be well conceived, accurately esti- 
mated, complete and well coordinated. It should be the plan 
of the officer who is responsible for the administration of the 
schools. At the present time, the superintendent does not as- 
sume responsibility for the budget and gives no consideration 
to the financial plan of the school district. 

It should be remembered in this connection that any plan or 
a part of any plan for the administration of the schools which 
may be proposed is either directly or indirectly connected with 
the education of the children of the district. For this reason 
responsibility for the preparation of administrative proposals 
should rest with the superintendent, who in the last analysis is 
responsible for a well coordinated and executed program of 
school service. Even under the dual executive organization to 
which the board is restricted by the state educational laws, the 
preparation and submission of the budget should be so formu- 
lated by the board that hereafter the superintendent should be 
made responsible for its preparation and submission. 

Appropriations Should Limit the Spending of Money, Not the 
Use of Facilities Purchased. 

Since the appropriation accounts are to serve as an in- 
strument for the control of the spending officers, these accounts 
should be so classified that control can be exercised over the dif- 
ferent commodities or "objects," i. e.. personal services, sup- 
plies, equipment, etc., which are to be purchased. 

This is a control over the spending of money, and is properly 
the only control which the board, as trustees and laymen, need to 
exercise over their executives through the appropriations. In 
other words, the money available each year should be appro- 
priated for the different objects to be bought. Such objects 
are usually designated and classified as "personal service," 
"supplies,' "materials," "equipment," "contract and open- 
order service," "fixed charges," "real property," and "special 
and miscellaneous." The use or application of these objects or 
facilities of expenditure in the administration of the schools 

48 



is a technical matter and should be wholly in the hands of a re- 
sponsible expert executive. Thus, if the board appropriates 
money on the basis of functions or sub-units of organization as 
it does at the present time, it is obvious that the executive is 
definitely restricted in the use or application of the objects or 
facilities. IMoreover, at the time when the appropriations ■ are 
made, it is impossible to state how these objects will be applied 
to the several functions or used by the several organizations. 

Limiting the expenditures to function or organization unit, 
together Avith the practice of the board in assuming responsibil- 
ity f(n' so many of the administrative duties, seriously interferes 
with executive initiative and responsibility. 

It is not to be implied that the executive shall not be held re- 
sponsible for the economical expenditure of the amounts ap- 
propriated. On the contrary, the system of accounts which is 
recommended in this report is such that the board will be able 
through periodic reports to get necessary information relative 
to the expense and cost of the different functions of the school 
district. In this way, the board will be able to detect extrava- 
gant administration and the executive will have the opportunity 
of demonstrating economies. 

While it is suggested that the board should appropriate on 
the basis of objects of expenditures, it should be informed of a 
great deal more than merely the fact that the money appro- 
priated is to buy so much personal service, supplies, etc. Accom- 
panying the expenditures classified by objects should be other 
classifications and supporting schedules which, in effect, would 
give the work program, i. e., the services or f mictions to be 
rendered, the funds to which expenditures would be chargeable, 
the plan of financing the school district, etc. In other words, it 
should show completely and in detail the work planned and the 
ivay such worli is to he financed. 

With this material at hand, together with miit costs and com- 
parative data of past years, a statement of the total cost of 
operation in the past, a surplus account to show how the pres- 
ent surplus or deficit had accumulated with a statement of the 
estimated surplus or deficit for the present year, a debt state- 
ment and a balance sheet to show what the district owns and 

49 
C of C— 4 



owes, the superintendent would be in a position to go before the 
board, present his program intelligently and exhaustively. The 
board would then be in a position to judge of the work and fi- 
nancial plan in the light of the essential facts. 

Recomm\cnded Form anil Contoit of the Budget. 

The pr;^paration and adoption of an adequate budget for 
the school district of Harrisburg will call for more serious and 
careful consideration on the part of the board and its executive 
than any other act of the administration. 

To summarize the recommendations expressed or implied in 
the above discussion, it is recommended: 

1 — That the budget for the school district of Harrisburg be 
prepared and presented to the board of school directors, 
by the superintendent as the responsible executive of- 
ficer of the school administration. 
2 — That money be appropriated on the basis of objects of ex- 
penditure. 
3 — That the following collateral or supporting data accompany 
these estimates : 

a — Classification of expenditures by function : High 
school, elementary school, teacher training, medi- 
cal inspection, etc. 
b — Classification of expenditures by character, 
c — Current expense ; administration, instruction, opera- 
tion and capital outlay. 
d — Classification of expenditure by funds : General fund, 

teachers' retirement fund, building fund, etc. 
e — A balance sheet, 
f — A debt statement. 
g — An operation account, 
h — Surplus account, 
i — Unit costs. 

j — Expenditures for a series of years comparable with 
the present proposals. 
-A complete plan of financing including prospective bor- 
rowings. 

50 



The Budget As a Means of Informing the Public. 

At the present time the school board issues an annual re- 
port of the activities of the district. This report appears some 
months after the close of the period to which it relates. It con- 
tains a record of things passed and gone, both in respect to the 
educational and financial aspects of the administration. 

While this has been the usual way of most school districts of 
informing the community of their activities, yet it can be said 
that such measures do not furnish the citizens at the proper 
time with adequate information relative to the plans, difficulties, 
achievements of the administration. 

A budget for the school district of Harrisburg as proposed 
would contain not only a presentation of the past activities of the 
school district but also a work program for the ensuing year. It 
would represent the plans for the future as predicated on the 
achievements of the past. It would be informative to the high- 
est degree with respect to the services, financial program and 
the present financial condition of the school district. In this 
document Would be collected all of the facts which the superin- 
tendent thinks are necessary to convince the board of school 
directors of the needs, and to inform it of the program of the 
school s3''stem. The board could do no better than to bring the 
public into its confidence by making public such information, 
and inviting public scnitiny and criticism. 

It would be of little or no value to publish the meager, ill- 
classified and incomplete statements which are now considered 
by the board in the course of the formulation' of its administra- 
tive plan for the ensuing year. If, however, the budget is drawn 
up along the lines recommended above, there will be all of the 
essential facts at hand which the public should know. It is 
therefore recommended that before adoption by the board, the 
tentative budget should be given wide publicity through the 
local papers and that opportunity be given to the citizens of the 
community to be heard with reference to the proposals of the 
school administration as outlined in the budget. 

Since it is recommended that the tentative budget be made 
known to the people of the community there should accompany 
it an explanatory statement or message, from the executive or 

51 



the superintendent, covering in general the reasons for increases 
or decreases, the advantages which are calculated to result in the 
proposed plan, explanations regarding increased or decreased 
services, increase or decrease in tax rate, etc. Such an intro- 
ductory statement would serve to assist the reader in realizing 
the significance of the proposed plan. 

The "Administrative" Year SJiould Be Coterminous With the 
Fiscal Year. 

According to the state education law the annual reorgani- 
zation of the board of school directors occurs each year on the 
first Monday of December. It is not until the first Monday in 
July that the ensuing fiscal year begins. The effect of this ar- 
rangement is that annual reports covering the operations of the 
fiscal year never correspond to any one administration of the 
board of school, directors. It is thus never possible to compare 
one administration with another. Thus citizens as well as mem- 
bers of the board do not know exactly what progress a given ad- 
ministration has made over a former administration. In ap- 
praising the work of public officials opportunity for comparison 
is vital and in the case of the Harrisburg school district the 
change which is necessary could be made by merely shifting the 
date of reorganization of the board so that it would fall at the 
beginning of the fiscal year. 

It is therefore recommended that this change be made a part 
of the legislative program at the next session of the state legis- 
lature. 



C2 



II 

CONSTRUCTION, OPERATION AND REPAIR 
OF BUILDINGS 

Construction. 

The General Construction Problem. 

The public school buildings, which are built by the Har- 
risburg school board, are designed by an architect engaged for 
that purpose by the board. The architect also supervises the 
construction of the buildings. He is directly responsible to the 
board throughout the period of his employment. 

The construction problem of the board resolves itself into two 
main elements: 

1 — The formulation of a plan or program for a new building 

project in which consideration must be given to the three 

following factors : 

a — The size of the new school unit, the lay-out of which 
should provide for future as well as present needs. 

b — The location of this new unit, which should be de- 
termined with reference to the needs of the entire 
system as well as the immediate local needs. 

c — The financial resources of the city for educational 
purposes. 

2 — The selection of an architect and the establishment of re- 
lations with him which will permit the board to control 
the main features of new construction without hamper- 
ing the architect in designing buildings which will con- 
form to accepted standards of modern schoolhouse con- 
struction. 

The Planning of Extensions of Physical Plant. 

Detailed examination of a number of buildings built 
within the last ten to fifteen years indicates that not enough eon- 

53 



sideration has been given to the importance of planning exten- 
sions to the physical plant on broad lines. This lack of good 
planning is reflected in — 

1 — The large number of small buildings in close proximity 
to each other in certain districts. 

2 — The very late acceptance of approved standards of build- 
ing design and construction. 

Too Many Small Buildings Have been Built. 

The desirability and economy of concentrating the physi- 
cal plant of the system in fairly large, well-designed and well- 
constructed buildings instead of scattering it in a number of 
small, cheap buildings do not seem to have been recognized and 
taken advantage of by the board until quite recently. From the 
relatively large number of small buildings located within close 
proximity to each other in some parts of the city it would seem 
that the building policy of the board has been dictated by re- 
quests of various wards and school districts rather than by the 
educational needs of the city as a whole. 

Standards of Construction. 

Critical inspection of the buildings erected in the last ten 
or twelve years shows that they have not conformed to the ac- 
cepted standards of the times for schoolhouse construction. 
Buildings of non-fireproof or only semi-fireproof construction 
were built as late as 1912-1913. Principles of correct school- 
room lighting were adopted only about two or three years ago. 
Some of the toilet facilities installed as late as 1905 were so 
poor that they are now being replaced. The heating and venti- 
lating plants in a number of the buildings were poorly designed 
and required extensive changes soon after completion. Some 
never have given entirely satisfactory service. 

It is Avell knoAvn that school buildings as a class are nearly 
always utilized until it is absolutely necessary to abandon or 
repla<^e them for reasons of safety, or to make room for larger 
buildings. As a result, there is not a community of any size in 
the country which has not a considerable number of wretched 

54 



old buildings entirely misuited to the educational needs of the- 
times, a menace to the safety of the occupants, expensive to 
keep in repair and to operate, and generally a source of irri- 
tation to the citizens. ^lany of the schools which Harrisburg has 
built in the last fifteen years are of a type which become obso- 
lete in the course of twenty years, but they will continue in use 
long after they should be abandoned because the financial con- 
dition of the city will not permit their abandonment. For 
this reason the education of many school children is needlessly 
hampered and many are housed under unsafe and insanitary 
conditions. 

It may be said that the Shimmel building, erected in 1915,. 
was the first public school building in Harrisburg to be built 
in accordance with modern ideas on school design and con- 
struction — that is, ideas which were generally accepted four or- 
five years previous to its erection. 

Coordination of Needs for Neiv Educational Facilities and 
Fijiancial Besources of the City. 

In attempting to explain the generally unsatisfactory 
character of schoolhouse construction, as previously described, 
a study was made of the construction costs of several buildings. 
From this study it would seem that the board has been actuated 
by a too rigid sense of economy in planning its buildings. Even 
in the case of the Steele building, the latest to be added to the 
school system, the funds originally appi'opriated were too lim- 
ited for a building of the size and type which the board had in 
mind. Experience with the Shimmel building, at that time just 
completed, should have furnished sufficient data on which to 
base an adequate appropriation for a building almost identical 
in size and general requirements. That both of these buildings 
were built at a reasonable cost, is shown by the fact that the cost 
per classroom (actual) averaged $5,500, and the cost per cubic 
foot, on the basis of measurements made during this sui*vey, 
averaged about 16 cents, exclusive of the architect's fees. Both 
of these unit costs are moderate for buildings of this kind. 

Appropriations for some of the larger buildings, notably the 
Technical High School, seem to have been based almost entirely 

55 



on guess work, the most evident desire being to economize even 
to an unnecessary degree. An analysis of the capital account 
of the board shows that on February 1, 1917, the net bonded 
indebtedness was only 1.61 per cent of the assessed valuaton of 
the city, whereas the legal limit without recourse to popular 
vote is 2 per cent., and the limit with popular sanction, 7 per 
cent. The necessity for any drastic economy is therefore not 
apparent, especially in the light of the popular approval given to 
the recently adopted program to spend $1,250,000 on new con- 
struction. 

Responsibility for Technical Phases of Construction. 

An examination of three of the most recently constructed 
buildings indicates that the board has taken upon itself respon- 
sibility for technical features of design and construction which a 
school board is not especially fitted to assume. 

For example, the board has always reserved the right to select 
the stone and brick for new buildings. In the case of the Shim- 
mel building a brick was selected which has effloresced badly and 
marred the appearance of the building. It is believed that a lay 
board should limit the choice so far as brick and stone are con- 
cerned, to specifying if it so desires, the color and maximum 
cost. The actual selection of the materials should be left to the 
architect. Only in this way can responsibility for results be 
fixed. It may be said further that the price of face brick and 
trim used on a building does not affect the cost of the building 
to any marked extent. 

In the case of the Technical High School, the power plant 
installation Avas a rather poor one in comparison with the rest 
of the building. While the board was not responsible for the 
actual selection and arrangement of the equipment, it failed to 
provide sufficient land for a first-class installation, thereby mak- 
ing necessary the selection of equipment ill-suited for the plant 
and the arrangement of this equipment in an improper man- 
ner. 

■The criticisms which can be made of this power plant from a 
mechanical viewpoint are numerous. Furthermore, no provis- 
ion was made for expansion of the plant. The result is that when 

56 



the new addition is made to the school, in accordance with the 
building program recently adopted, it will be necessary to dis- 
mantle the present power plant and build an entirely new one. 

In the case of the Steele building, a type of heating and venti- 
lating system; was chosen by the board on its own initiative which 
is considered obsolete. Discussion of the apparent advantages 
and the numerous disadvantages of this system ' as compared 
with a first-class steam plant is reserved for a later section of 
this report. 

It is recommended that the board leave technical matters of 
design and construction to the experts employed by it for just 
that purpose. 

Preliminary Study of Building Projects. 

The consideration which has been given to the present 
})rogram of enlarging the Harrisburg public school system by 
the construction of new high schools is typical of the thought 
and study which should be given to all new projects, whether 
large or small. The board is to be commended upon the steps 
so far taken to bring the physical plant up-to-date and keep it 
abreast of the times, even though the present situation is the 
outcome of serious neglect in past years. 

In the planning of new buildings, it is believed that a freer 
hand should be given to the architect. To be sure the board 
must keep a tight hold on the purse strings. This should be 
done, not as in the past by merely specifying a lump sum for a 
building without reference to the unit cost of accounnodations 
to be provided, but by limiting the total cost on the basis of 
unit costs per classroom or equivalent study area, and per cubic 
foot. 

The working out of details of design and construction should 
be left to the architect in collaboration with the superintendent 
of schools and the superintendent of buildings (if the board 
accepts a recommendation made later in this report that a 
superintendent of buildings be employed). 

Several instances of defective design and construction were 
observed in recent buildings such as are likely to occur unless the 
building plans are carefully studied by the superintendent of 



schools with reference to educational efficiency of the buildings 
from an administrative viewpoint, and also by a well qualified 
superintendent of buildings familiar with features of building 
operation : 

In the Steele building the room intended for use as the prin- 
cipal's office is only nine feet by ten feet and is poorly 
located. 

In both the Steele and Shimmel buildings the auditorium stage 
is not deep enough for dramatic exercises, one of the things 
for which a school auditorium is intended. 

The roof covering of both the Steele and Shimmel buildings 
are of tar paper. In the case of the Shimmel building, a 
considerable portion of the covering was ripped off during 
a recent storm. It is recommended that the roofs on new 
buildings be of the type known as "slag" roofs, which are 
inexpensive for the service which they give. 

In the Steele building the furnace room has an entrance only 
at one end. This means that the janitor can get to the room 
from a far corner of the building only by a circuitous route 
within or by a route outside of the building. 

In the Steele building no screen was provided over the fresh 
air intake. Paper, dust and particles flying about in the 
air are likely to be sucked in. If paper should be blown 
through the fan and get lodged in some part of the very 
hot radiating surface of the furnaces, a fire might be 
started. Fires have been known to start in just this way. 
A grill should be placed over the fresh air intake, and, in 
addition, a cheese-cloth filter 'to keep out the dust which 
ultimately is deposited on the red hot furnace surfaces and 
creates disagreeable odors. Another serious objection to thi' 
intake is that it is located immediately over the window of 
the ash storage space. This means that the fan must be 
stopped every time ashes are handled; and it is likely even 
then that a considerable amount of ash dust gets into the 
intake. 

The auxiliary hot water heating system intended to heat sev- 
eral of the small rooms in the Steele building by means of 
radiators is poorly laid out. The circulation is so defective 



that these rooms are always cold during extreme weather. 
Futhermore. the plumbing- is apt to freeze in the southwest 
corner of the building. 

The grates for the hot air furnace in the Steele building were 
evidently intended for soft coal, as the pea coal which is 
used falls through and is either wasted or recovered only 
by the tedioiTS process of sieving. 

In the Shimmel building the level of the coal bin is several 
feet higher than the boiler room level, and it is necessary 
for the janitor to wheel coal down a steep incline. This 
sort of an error of design is not easily detected on plans, 
but should be caught during construction by a wide-awake 
building superintendent. It is recommended that the steep 
grade referred to be eliminated, even at this late date. 

In the Shimmel building the electric lights are attached to the 
ceiling. They are so high that a larger number must be 
provided for adequate illumination thati would be ni^cessary 
if they were suspended several feet. 

The trap on the drain line to the roof of the front portico is 
buried in the building wall. This trap has become dogged, 
which in turn has caused the water to overtlow. marring 
the appearance of th*^ building and ruining the ])lastcr in- 
side. 

The playgroimd of the Shimmel building has been covered 
with cinders containing a considerable proportion of large 
clinkers. Cinders of this kind should not be used, as chil- 
dren falling on them may be seriously injured. 

Many defects, such as those listed above, could be tletrctinl 
by a building superintendent either on the plans or during the 
process of construction. It is well known and architects them- 
selves are usually free to acknowledge that errors are frequently 
made by them simply because of lack of exj)erience on their part 
in the care and operation of buildings, and in the conduct of the 
business for which different kinds of buildings are intended. A 
building superintendent should also ])e of great value in super- 
vising the acceptance tests which should be made of all instal- 
lations of mechanical equipment. 

59 



Business Methods Relating to Construction Work 

It is recommended that certain changes be made in the busi- 
ness methods of the board relating to construction work. 

The Architect Should Be Emplaned Under Contract. 

In past years no contract between the board and the archi- 
tect has been entered into. It is stated that no difficulties have 
arisen on that account. This is believed to be more a matter of 
good fortune than good business. It is recommended that the 
relations between the board and an architect be defined hereafter 
by means of a contract. Care should be taken to insert in such 
contracts the stipulation that the cost of the building to be de- 
signed shall come within the amount apppropriated. In this 
way the board would be able to exercise more effective control 
than is now possible over the funds provided for new construc- 
tion. It would also be incumbent upon the board, if such a stip- 
ulation were to hold, to estimate the cost of a proposed building 
more carefully than in the past. 

Bids on Construction Sliould Be Accompanied hy Schedules of 
Unit Prices. 

At the present time payments on account for new con- 
struction are made on the basis of 90 per cent, of the work. com- 
pleted, as estimated by the architect. The architect's estimates 
are based upon unit costs computed by him. It is recommended 
that a schedule of unit costs be required of contractors when 
bids are submitted. These unit costs should then serve as a basis 
for payments on account and also for any extras or credits which 
may be paid later by the board. Incidentally, these schedules 
of unit costs would be of considerable value in comparing bids 
of various contractors. 

Filing of Construction Data: Preservation of Plans. 

At the present time some of the data on new buildings is 
filed in the correspondence files and some is contained in the 
board minutes from which it can lie assembled only with diffi 

60 



eulty. Considerable data of special importance in connection 
with operation and maintenance, such as eqnipment data, floor 
areas to be used in connection with janitorial compensation, and 
cnbitures in connection with unit costs of operation (as 
later explained herein) is not recorded at all. It was found 
difficult to obtain the cost data on several of the recent buildings. 
This data was finally obtained from the office of the architect. 
Recourse was had to the plans of several buildings for the 
purpose of measuring cubitures as a basis for appraising the 
unit costs of construction. It was found that many plans were 
missing, including those of the Shimmel and Steele buildings. It 
was stated that these plans had been loaned to various contrac- 
tors in connection with repair work and had never been re- 
turned. If proper control over repairs and operation is estab- 
lished in accordance with later recommendations of this report, 
frequent reference will be necessary to building plans and to con- 
struction data. It is urged, therefore, that as each new building 
is constructed all of the data referring to it be filed under one 
cover, and that in the future no plans whatever be loaned out. 

Engineering Features of School Plants 

Coal Storage Space in New I'ianls. 

In the majority of the older schools storage space for a 
year*s supply of coal has been provided. In preparing the gen- 
eral specifications for the newer school buildings, however, the 
tendency has been to limit the coal storage space to but a frac- 
tion of the year's supply. It is reconnnended that space for a 
year's supply be provided, wherever this can be done, without 
excessive cost. 

The reasons for this recommendation are : 

1 — Coal which can be delivered during the summer months 
can be bought cheaper than if winter deliveries must be 
made. Savings as high as fifty cents per ton are some- 
times made in this way. 

2 — If deliveries are completed during the summer frequent 
reorders throughout the year and trouble regarding the 
supply under unusual market conditions are eliminated. 
61 



3 — It is relatively easj^ when bins are filled at one time to 
check up wagon-load deliveries against car-load mani- 
fests, this check being the only one which the board now 
has on the tonnage for which it is billed. 

Balanced Systems of Ventilation in Nciv Plants. 

In most of the plants of the school system which have 
artificial ventilation, the air is forced in by means of a fan and 
makes its exit from the various rooms through vents leading 
to the roof. Such a system is called an "unbalanced" system 
and can be operated properly only when all classroom windows 
and doors are closed. When a teacher opens the windows a 
short circuit is created, large volumes of air go out through the 
open windows, and the other rooms where the windows are 
closed do not receive their proper share of fresh air. This pro- 
duces a very unsatisfactory condition throughout the entire 
building. 

It is recommended that so-called "balanced" systems of ven- 
tilation be provided in new school Iniildings. A "balanced" 
system is one in which the fresh air supplied by a fan Is also 
sucked out of the rooms by means of a fan instead of being al- 
lowed to make its own exit through a vent. The production of 
a partial vacuum in the zone about the foul air outlet prevents 
large volumes of air going through open windows and doors. 
In this way a uniform condition of ventilation is maintained in 
all of the rooms of the building. 

Air Wastiers in New Ventilation Installations. 

The Shimmel building is the only school building in Har- 
risburg provided with an air washer. The type of heating and 
ventilating system installed in the Steele building precluded the 
use of an air washer. The installation of air washers in all new 
schools is recommended primarily for the reason that by their 
use humidity can be controlled. 

Recent experiment and practical observation of the effects 
upon the human system of the various factors introduced by arti- 
ficial heating and ventilating under different conditions tend 
more and more to strengthen the conclusion that symptoms of 

62 



discomfort and disturbauees of the normal health equilibrium are 
due primarily to the physical condition of the air with refer- 
ence to temperature, humidity and circulation about the body. 
The older theory was that the chemical condition of the air 
with reference to content of carbon-dioxide, organic poisons and 
germs was primarily responsible for deleterious effects. In fact, 
the various state laws defining the minimum amounts of air to 
be supplied in schools are based primarily upon this old con- 
ception which has been generally disproved. The modern view- 
is that the large amounts of air specified in the laws are valu- 
able, not because chemical purity is assured, but because cir- 
culation about the body, with its exhilarating effect, is assured. 
It is because of its j)ronounced exhilarating effect tnat vvniv**>w 
ventilation is popular, and there is no doubt that it is valuable 
when the weather is good. But, unfortunately, w-indow venti- 
lation is too erratic for large rooms with many occupants. In 
cold, brisk weather its "benefits" are too severe upon those 
nearest the windows; in warm, humid weather only those near 
the windows receive any ventilation at all. 

If provision must be made at great expense to secure positive 
ventilation, as defined by law, it is believed that the small addi- 
tional outlay which would make humidity control possible would 
be fully justified. Next to temperature control, humidity con- 
trol is perhaps the most important element in ventilation. Ex- 
cessive dryness affects the membranes of the nose, throat and 
mouth. By dry air the mucous membrane is rendered less able 
to resist colds and other affections. Furthermore, evaporation of 
moisture from the body is very rapid in dry air, which means 
that room temperature must be kept higher for bodily comfort 
than if the humidity were under control.* 

Steam Heating Systems in Which Heating is Independent of the 
Ventilation Should Be Installed in New Buildings. 

The Shimmel building is the only school building in Har- 
risburg in which the heating and ventilating plant is designed 
in accordance with modern principles of school engineering. 
The most important features of design of this plant are: 

♦See also special report on schoolhouse heating and ventilating:; In- 
diana State Board of Accounts, 1917. 

63 



1 — The heating of the building by a vacuum system of direct 
radiation with automatic temperature control. 

2 — The ventilating of the building by an independent system 
in which air is washed, humidified and tempered auto- 
matically, but not heated, for the purpose of heating the 
building. The only unsatisfactory feature of the venti- 
lating plant at the Shimmel building is that it is "im- 
balanced. ' ' 

It is generally recognized that the heating of school buildings 
should be kept separate from the ventilation. This is substan- 
tiated by experience in the case of a number of Harrisburg 
schools in which steam systems of hot air heating were originally 
provided. It was subsequently found necessary to install radia- 
tors in the rooms of several of these buildings. 

Considerable criticism has been .justly made of the steam sys- 
tems in the Harrisburg schools. This criticism is due, however, 
not to the use of steam as a medium for heating, but to faulty 
application of correct principles of steam heating. 

Reference has already been made to the system of hot-air 
heating and ventilation chosen by the board for the Steele build- 
ing. This system is not considered a good one for the following 
reasons : 

1 — There is danger in any furnace system of hot-air heating 
of leakage of the furnace gases into the fresh-air cham- 
ber. 

2 — The fresh air comes in intimate contact with radiating 
surfaces heated at times almost to a red heat. This 
causes certain minute animal and vegetable particles in 
the air to become charred, giving rise to the common 
complaint of "cooked air." 

3 — It is desirable from a physiological viewpoint to have a 
room heated by radiant heat and to have fresh air sup- 
plied at a temperature somewhat lower than room tem- 
perature. Such an arrangement conduces to bodily com- 
fort and at the same time produces mild exhilaration 
due to the relatively cool air provided. 
64 



In the furnace system of hot-air heating in which 
dependence is placed upon the hot air to heat the build- 
ing as well as to ventilate it, it becomes necessary in cold 
weather to heat the air to a very high temperature, with 
the result that the occupants breathe air which is much 
warmer than room temperature. 

4 — Control of humidity, which is very nearly as important as 
control of temperature, is not possible with the furnace 
system. Furthermore, it is impracticable in this system 
to cleanse the air except by means of cloth filters which 
are a poor substitute for air washers. 

5 — The heating of a building by a fan system of hot air is ab- 
solutely dependent upon the operation of the fan. If* 
the fan unit stops for any reason whatsoever, the fur- 
naces are rendered practically useless. 

The hot-air furnace system is undoubtedly cheaper to install 
than a flrst-elass steam system. It is also possible with the hot- 
air furnace to heat up a cold building more quickly than with 
steam. One of the major claims in favor of the furnace system, 
is that it is simpler than the steam system. This is true, but the 
mere fact that one system is simpler than another, does not make 
it the better one. Although a hot-air system is apparently simp- 
ler than a steam system, it actually requires much more careful 
and constant hand manipulation. 

The relative economies of the two types of plant under dis- 
cussion in the matter of operation and maintenance have not 
been proved one way or the other. Theoretical arguments are 
advanced by the advocates of each type, but verj^ little reliable 
data of value for comparative purposes is available. The fact 
remains that steam systems in which the heating and ventila- 
tion are independent are installed in an overwhelming major- 
ity of new buildings throughout the country, and where changes 
from one system to another are made, either in old buildings or 
in new additions to old buildings, the hot-air system is usually 
replaced by a steam system. 

C5 
C of c — 5 



Use of Central Station Steam in New School Buildings. 

The rate for central station steam in Harrisburg, namely, 
forty cents net per thousand pounds, is unusually low. This is 
primarily due to the fact that the steam company uses coal 
which it recovers from the river bed at a very low cost. This 
coal can be successfully used in large plants with careful firing 
and constant supervision, but not in small school plants. 

A simple calculation will indicate roughly the relative econ- 
omy of purchased steam, at forty cents per thousand pounds as 
against steam generated locally in a school plant. It is found 
by analysis of operating costs in a number of school plants that 
the fuel cost is usually around 60 to 70 per cent, and the labor 
cost 40 to 30 per cent, of the total cost, neglecting for the time 
' being the small per cent, represented by other supplies and 
miscellaneous items. Therefore, if steam is to be made m a 
school plant at a cost of forty cents per thousand pounds, the 
corresponding cost of fuel must not exceed twenty-four to 
twenty-eight cents per thousand pounds. Assume twenty-eight 
cents, the higher value being more favorable to local generation. 
The ratio between pounds of steam generated and pounds of 
coal fired for an entire season under the conditions obtaining 
in school plants is certainly not over six to one and probably 
nearer five to one. Let it be assumed, however, that the local 
plant operates at the higher ratio of six to one, that is, at the 
higher efficiency, then, for every thousand pounds of steam 
generated at a fuel cost of twenty-eight cents, 167 pounds of 
coal at a cost of twenty-eight cents, will be required (1,000 di- 
vided by 6=: 167). If 167 pounds of coal cost twenty-eight 
cents, then a gross ton will cost 0.28 divided by 167 times 
2240=$3.76. 

To complete the calculation certain important deductions 
must be made from this figure of $3.76. Removal of ashes costs 
the board about twenty cents per ton of coal burned ; miscel- 
laneous supplies are equivalent to fifteen cents more. Deprecia- 
tion and repairs are estimated as equivalent to from eighty 
cents to $1.20 per ton of coal burned. The figure $3.76, less the 
^um of these items, leaves $2.20 to $2.60 as the approximate 
price limits within which coal must be bought in order that 

66 



a school plant may compete with the local central station plant. 
Such fixed charges as interest on investment, insurance, etc., 
would lower the figure still further, but these are purposely 
omitted from the computation as it is believed wise in all cases 
to install a heating plant to cover conditions of emergency. 

It is not believed that a local steam plant can compete with 
the central station under the conditions which have been sum- 
marized and it is therefore suggested that consideration b*^ 
given to the purchase of steam for any new school building 
which may be erected near the steam company's lines. It is 
significant that the United States post office building in Har- 
risburg uses purchased steam. The office which supervises the 
operation of these federal office buildings is known to make care- 
ful studies of operating costs. That office, which has had wide 
experience in operating buildings of all sizes, makes it a prac- 
tice to install heating plants even if it is known that purchased 
steam is to be used. 

Purchase of Electricity versus Local Generation at Technical 
High School. 

At the present time the Technical High School is using a 
considerable amount of purchased electricity for power at the 
rate of three cents per kilowatt hour. This is an unusually low 
rate in consideration of the fact that there is no fixed charge (in 
Harrisburg this is usually fifty-five cents per horsepower of 
connected load) and no maximum demand rate (usually seven 
cents per K. W. hour for the first thirty hours' use per month 
of the full connected load). 

During the winter months, especially during the day time 
when heat is on throughout the entire building, electricity can 
undoubtedly be generated for less than three cents per kilo- 
watt hour. This is because the steam which is needed primar- 
ily for heating can be passed through the engines with only 
a small loss ; and further, because the operation of an electrical 
plant of the size under consideration does not require any la- 
bor beyond that needed for tending the heating plant. Dur- 
ing the season, however, when there is no heating of the build- 
ings, it is believed quite impossible to generate electricity for 

67 



anything like tliree cents per kilowatt hour, because then all of 
the fuel used must be charged against the electrical plant. 

It is therefore recommended that if a new mechanical plant 
be installed in connection with the addition to be made to the 
high school, this plant be so designed as to generate electricity 
locally, with provision, howevjer, for the use of purchased 
power. 

Repair and Operation of Buildings 

Although the repair and the operation of the physical plant 
of a school system represent two well-defined functions of man- 
agement, each with its own procedure, these functions are so 
closely related from an administrative viewpoint that they are 
considered in this report under one heading. 

Repair of buildings, as the term is used herein, refers espe- 
cially to those major repairs of buildings and mechanical equip- 
ment w^hich cannot be handled by the local janitors. 

The operation of buildings includes janitorial care and the 
furnishing of heat, ventilation, light, power and allied services. 

Repair of Buildings and Equipment 

Extent and General Character of Eepair Work. 

The organization and administrative procedure best 
adapted to handling the repair work of a school board depends 
primarily upon the extent and general character of this work. 
An examination of the repair account of the board shows that 
it includes a large number of miscellaneous items not properly 
chargeable against repairs, such as insurance, telephone, water 
rent, electricity, new furniture, educational equipment, ash 
removal and nearly all operating supplies except fuel and jani- 
torial supplies. During the year 1915-1916 the total of the re- 
pair account was .$28,506. An analysis of the account indicates 
that of this amount but from $18,000 to $19,000 was strictly 
chargeable against building and equipment repairs. 

Some of the repairs are made directly by employees of the 
board, but the bulk are made by outside contractors. The only 
men regularly employed by the board for repair work are one 

68 



carpenter, known as a general repairman, and one assistant. 
They do nearly all the carpentry work, and, in addition, make 
various articles of school furniture. During the summer extra 
help is sometimes employed to do roof painting. The janitors 
also do general renovating and, in some cases, considerable re- 
pair work during the summer. 

All other repairs aggregating fully 80 to 85 per cent, of the 
total ar(^ done by outside contractors. It is estimated that aoout 
80 per cent, or more of contract repairs are done during the 
summer time. 

Administrative Procedure Relating to Repair Work. 

The procedure relating to repair work usually follows 
certain consecutive steps: 

1 — Reporting of the apparent need for repair work to the 

authorities who decide with respect thereto. 
2 — Action of those authorities upon the reported needs as 

they develop. 
3 — Authorizing of contractors or departmental workmen to 

make repairs. 
4 — Inspection of repair work during its progress and after 

completion. 
5 — Approval of bills. 
Each one of these steps is discussed in order. 

Reporting Repair Needs. 

The board alone has the power to direct repairs. The 
need or desirability of repairs is usually reported to the board, 
either directly or indirectly, by a school principal, teacher or 
janitor, any one of whom may appear directly before the board 
to make a personal appeal or to furnish information regarding 
a stated need ; or they may communicate with the board or with 
the secretary in writing (on any kind of paper which happens 
to be handy) or advise the secretary'' 's office by telephone or in 
person, or in some other way get the attention or enlist the in- 
terest of the board director of the district or some other direc- 
tor. 

69 



An examination of the minutes and other records shows that 
practically every means of communication has been used to call 
the attention of the board to repair needs. There seems to be 
only one point on which any degree of uniformity in reporting 
is attained. This is in connection with the annual inspection by 
the board each spring to decide upon repairs to be made during 
the summer. Previous to this inspection, principals, teachers 
and janitors are instructed to report repair needs. These re- 
ports are then used as a guide by the board in putting the build- 
ings in shape for the ensuing year. 

In many cases requests approved by the formal action of the 
board are of a decidedly minor nature. For example, it is re- 
corded that the principal of a school appeared before the board 
to complain of insufficient heat in two rooms ; that a teacher ap- 
peared in person to make a request for a blackboard in his 
room; that the secretary -was directed to have a dead plate in 
a boiler replaced ; that a director was authorized to have a 
"heat pipe" run to a teacher's room; that a director empowered 
to supervise a certain boiler repair was authorized to have addi- 
tional minor repairs made at the same time. 

The need for more uniform methods of reporting repairs to be 
made is obvious. The first step is suggested in the paragraph 
which follows. 

Standard Forms Should Be Used to Becord the Need for Ee- 
pairs. 

It is believed that there should be two standard forms for 
recording repair needs in the Ilarrisburg schools: 

1 — One form to be used in connection with routine repairs 
which have to be made throughout the year. 

2 — The other form to be used to summarize repairs which 
should be made in the different buildings during the 
summer. 

Suggested forms are contained in Appendix "C" (See 
Forms Nos. 1 and 2). The use of these forms will help con- 
siderably to establish a uniform procedure in the handling of 
repairs. At the present time requests are frequently made 

70 



over the telephone with no written evidence that they have been 
made. It is important that telephone requests be followed up by- 
written requests. 

Action. Upon Reported Needs for Repairs. 

The board may act upon reported needs for repairs m a 
number of different ways. It may make personal inspection as 
a board. In a number of cases the secretary is authorized to 
secure bids, or in a general way, directed to have the work done. 
Examination of the minutes shows that quite frequently the 
president of the board, or the chairman of the building com- 
mittee, or some director with a fair knowledge of repair mat- 
ters, or perhaps more time at his disposal than other directors, 
is authorized to attend to the repair. In some cases the direc- 
tor who calls attention to the need or in whose district tne 
school requiring attention is located, is authorized to attend to 
it. In fewer cases the building committee, or a special com- 
mittee, or the secretary, jointly with the president of the board, 
or the chairman of the building committee, or some other mem- 
ber, is directed to have the work done. 

These diverse methods of handling repairs make it difficult to 
fix responsibility. Furthermore, the maintenance of buildings 
frequently involves technical matters and there is evidence that 
the varying methods used by the board sometimes tend to un- 
necessary expense. 

Annual Inspection of Buildiufis By the Board. 

The board makes a tour of all school properties in the 
spring of each year to decide upon the repairs to be made dur- 
ing the folloAving summer. It has been the custom of the board 
to decide forthwith as it makes the round, the merits of a re- 
quest of a principal, teacher or janitor without having had an 
opportunity to consider the repair problem of the entire sys- 
tem for the year as a whole, that is, decisions made in the early 
part of the tour were made without reference to the relative 
importance of the repairs to the repair needs of the entire sys- 
tem, which, of course, could not be known until the inspection 
was completed. During the present year this procedure was im- 

71 



proved, in that the general repairman was instructed to make 
a round of inspection preliminary to that of the board. The 
board was thereby enabled on its tour to avail itself of the re- 
pairman's opinion in deciding the relative needs of the various 
repairs. 

It is obvious that a two or three days' inspection trip by a 
lay board, during which time thirty buildings are visited, is an 
unsatisfactory way to decide upon repairs. The granting or re- 
fusal of requests is liable to be determined, not so much by the 
merits of the various cases, as by the effect which this fatiguing 
process has upon the members of the inspection party. A com- 
parison of the requests made for repairs during the last year 
with the repairs actually imdertaken shows that the board ap- 
proved nearly all of the original requests. This would indicate 
that the repairs were badly needed, that principals, teachers 
and janitors were very moderate in their requests, or that the 
board was exceedingly liberal in granting them. 

No FreJiuii)utrij Esthnaies of Cost of Summer Repair WorJc. 

It is common in every day business practice to estimate 
wherever possible, the cost of an undertaking before the work 
is decided upon. In the Harrisburg school district summer re- 
pairs are decided upon practically at the time of the annual in- 
spection and if bids are obtained, the costs are ascertained at 
some later time. 

The probable cost of each job should be known, if it is pos- 
sible to make an estimate, at the time the work is decided upon. 
The estimated total for all work to be done should be known 
before any of the work is authorized. It is only in this way that 
financial control over repairs can be exercised. Financial con- 
trol is the basis of good management. 

Preliminary estimates of cost are of value when bids are se- 
cured for the various jobs, especially in connection with paint- 
ing, flooring, large roofing and similar jobs, the cost of which 
is reducible to a square foot or other luiit basis. At the pres- 
ent time the board usually selects the lowest bidder, but it has 
no means of judging whether the lowest bid is too high for a 
particular job or so low that the work can hardly be done prop- 

72 



erly at the bid price. Furthermore, it is quite likel}- that cer- 
tain jobs could be done more economically and better by hiring 
extra help temporarily than by engaging a contractor. For ex- 
ample, in the ease of certain kinds of painting the use of good 
materials would be assured and cheaper labor could probably 
be used in this way. 

Techriical Guidance Needed on Certain Repair IVorA:. 

The following examples of repairs undertaken by the 
board in recent years will serve to show that the board needs 
technical guidance in repair work: 

At the Technical High School a system of balanced draft was 
installed in 1914 in order that river coal might be burned in- 
stead of the bituminous which was then being used. It was esti- 
mated by the company which installed the system (a patented 
one later decided in the courts to be an infringement against 
other patents) that a saving of 40 per cent, in the fuel bill could 
be effected. The fuel bills of the school for the years 1914, 1915 
and 1916 were $1,478, $1,192 and $1,168, respectively. The aver- 
age annual saving for the two years subsequent to the installa- 
tion of balanced draft was therefore $298, or about 20 per 
cent. At this rate it will take the installation which cost $1,650, 
about five and one-half years to pay for itself before any net 
economies in fuel can be realized. Experience shows that in 
most eases installations of this kind are justified onl}^ when 
they can pay for themselves in the course of one or two years, 
and that it is unwise to base a calculated saving on a longer 
period because unforeseen conditions may arise upsetting the 
entire calculation. 

It is believed that the installation of artificial draft to burn 
cheap anthracite coal in a high pressure plant like the one at 
the Technical High School is economical when the installation 
can be made at not too great an expense and when its use can 
be properly supervised. The trouble with the particular in- 
stallation under consideration is that it costs about $1,000 more 
than such a system should cost. 

Boards of education and similar lay boards are frequently 
singled out by agents who have remarkable fuel saving or other 

73 



devices to sell. For example, an offer was made to the Harris- 
burg board to equip several schools with devices intended to save 
25 to 40 per cent, of the fuel bills, the cost of the devices to 
amount to $400 per school. An examination of the fuel bill of 
one of those schools shows that the average for the past two 
years was only about $450. The economies claimed by the agent 
for his device therefore are not apparent. It was finally de- 
cided by the board to equip one school, the board to pay at the 
rate of $5 per inch of smoke pipe diameter "if the device proved 
satisfactory." It is to the credit of the board that no payments 
have been made so far. It is not known just how the board 
could finally decide whether the device had proved "satisfac- 
tory." 

At the Lincoln School a motor was substituted only last year 
for the fan engine originally installed in the building which 
was built in 1905. The installation of this motor cost $508. It 
is stated that the change was decided upon for reasons of econ- 
omy, as it was known that the engine was wasting steam. It 
is very doubtful whether these fans can be driven more econom- 
ically by a motor than by even a wasteful engine where the 
exhaust is used in a tempering coil as in the Lincoln School. 
Furthermore, a comparison of the fuel bills of the school, which 
averaged but $524 for the past two years, with the cost of the 
installation, namely, $508, leads to the belief that the installa- 
tion cannot possibly be justified on the grounds of economy. 

Let it be assumed, however, that the installation of the motor 
was warranted for mechanical reasons, as the contributory 
claim was also advanced that the engine showed signs of wear 
and was beginning to give trouble. In this case serious criti- 
cism can be made of the method taken by the board, which was 
as follows : The local power company was requested to submit 
a bid for the installation of a motor. Accordingly its repre- 
sentative visited the school, and, finding the plant shut down, 
it being in mid-summer, obtained certain data from the janitor 
regarding the speed of the fans. The size of the motor w^as then 
based upon this data, the judgment of the power company's 
representative being influenced by the injunction of the board to 
be liberal in making installations of this kind. The motor was 

74 



then installed, but it was not connected to the fans, owing to 
misunderstanding between the board and the power oom]iany. 
This alone caused a delay of one month in mid-winter, when 
the need for the fan was greatest. 

The net result of this procedure has been : first, that the 15 
horsepower motor installed is about 50 per cent, too large, mak- 
ing the installation cost excessive ; second, bills for current will 
always be excessive owing to the fact that a considerable portion 
consists of a fixed charge (fifty-five cents per horsepower), and 
another large portion consists of a maximum demand charge 
based also upon the size of the motor; third, the motor is run 
at about 60 per cent, of its rated load and therefore at very low 
efficiency. 

At the Cameron School an entirel}'^ new toilet installation for 
the boys was made at a cost of about $1,800. The number of 
waterclosets provided is greatly in excess of the requirements of 
the school. Moreover, the type of flushing device selected is gen- 
erally found unsatisfactory for school service. It is believed 
that waterclosets in school buildings should be of the type which 
flush automatically Avhen the child rises from the seat. Fixtures 
are on the market with valves having no stuffing boxes and lo- 
cated in the earthenware, making it impossible for the children 
to tamper with them. 

The installation of the new toilets at the Harris School in 
place of the outhouses is open to criticism in the following re- 
spects : 

1 — The utility of the building exit has been seriously dimin- 
ished as a means of egress in case of fire. 

2 — The entrance to the boys' and girls' sections of the toilet 
are close together. 

3 — The thin wood partition between these sections is open at 
the top. 

4 — Insufficient heating surface was installed, making the 
toilets quite cold in the winter and giving rise to con- 
linnal danger of freezing of the fixtures. 
75 



On the whole, it may be said that this "improvement" was 
not as satisfactory as it should have been. 

Authorizations to Contractors to Make Repairs. 

The bulk of repair work, as already stated, is done by 
outside contractors, either after competitive bidding or upon 
open order. The law requires competitive bidding on jobs cost- 
ing over $300. Examination of a large number of these jobs 
shows that awards are usually made to the lowest bidder. Open 
orders to contractors are usually distributed among the trades- 
men in town. 

Very few jobs are done on specifications, primarily because 
there is no one within the organization of the board especially 
fitted to write specifications. This was brought out in the case 
of the plumbing installation at the Cameron building pre- 
viously criticised. The first draft of specifications for this par- 
ticular job was written by the secretary. The draft was then 
referred to the local agetit of a large plumbing supply house 
who practically rewrote the specifications. Fixtures bearing the 
trade name of the goods of this supply house were specified as 
the standard, the "equal of which" the contractor would have 
to furnish. 

It happens from time to time that contractors bidding on a 
job have different ideas of what the job includes. In a certain 
painting job, for instance, the contractor refused to scrub the 
woodwork. In the painting of rooms some painters have re- 
fused to paint inside of closets or other surfaces without extra 
compensation. In one school where a wood ceiling partially 
destroyed by fire was replaced by a concrete slab, extra com- 
pensation for a new window amounting to $65 was later paid. 

On some kinds of repair work, for example, roofing, tin- 
smithing, and the like, the work to be done is usually left to 
the discretion of the contractor. The weaknesses of such a 
practice are obvious, and yet, under the present methods and 
with the present organization of the board, this is practically 
the only means of having certain repairs made which are diffi- 
cult to define. 



standard Forms SJioidd Be Used for Repair Orders. 

At the present time orders to contractors and also to the 
general repairman are typed on letterhead paper. In the case 
of work orders to the repairman no copies are kept. 
Orders to contractors are usually of two kinds: 

1 — A notification to the contractor that he has been awarded 
a contract in accordance with the terms of his bid. 

2 — An authorization to do certain work where no bid has been 
obtained. 

A simple standard form for notifying contractors of awards 
would eliminate much of the typing which is now repeated in 
practically every notification. A duplicate copy should, of 
course, be kept. A suggested form for authorizing a contractor 
to do certain work on open order is submitted in Appendix "C" 
(See Form No. 3). This form should be made in triplicate: 
One for office record, one to be kept by the contractor, and one 
to be presented to the principal by the contractor notifying the 
principal and janitor that the contractor has been authorized to 
make a certain repair. When the repair is done, this last copy 
should be signed by the principal and returned ' to the ofifice 
by the contractor when he submits his bill. Meanwhile, the 
janitor who is apprised of the arrival of the contractor or his 
workmen should be required to keep a record of the time spent 
on the job. This record can then bs used to check against the 
labor item of the contractor's bill. 

A form is also suggested for repairs to be done by the general 
repairman (See Form No. 4, Appendix "C"). This form should 
be in duplicate. The reverse side of the original provides room 
for the record of labor and material used. This would make it 
possible to keep such cost records as experience would show to 
be desirable. 

Inspection of Repairs. 

Some kinds of repair work are apparently inspected con- 
sistently ; others are not inspected, at least not with the care 
which should be given. The general repairman usually mspects 
carpentry work done on contract. Occasionally, he is directed 

77 



by special resolution of the board to supervise other work, e. g., 
grading and paving. 

Painting work is usually done during the summer and is 
inspected by the instructor in woodworking at the Tecluiical 
High School. During the summer of 1916 the inspection of this 
work was done in a fairly systematic manner. Jobs were usually 
inspected once a week and a report was made out after the work 
was completed. This was the only ivriUen report of any kind 
made on any inspection ivork. Such inspecting took about six- 
teen days of the instructor 's time. In previous years inspection 
work of this kind was usually done, if at all, at the request of 
some director. 

' The repairs to heating, ventilating, electrical, sanitary and 
other equipment, which are made in the summer, are usually 
inspected by the instructor of metal working at the high school 
These inspections also were done for the first time with any de- 
gree of system during the last summer. No written reports or 
records of these inspections, however, were made. The work 
took about ten days of the instructor's time. Repairs to equip- 
ment made throughout the year may or may not l)e inspected by 
the secretary, board member or committee authorized b}' reso- 
lution of the board to have the repair made. 

In a few cases janitors have been authorized to supervise 
repairs by contractors, such as paving and grading. Masonry, 
roofing and similar work seem to be inspected only if the job 
is an important one, — sometimes by the general repairman, some- 
times by a member of the board or the secretary, or some com- 
bination of secretarj', board member and committee. 

That poor work is bound to be done occasionally under these 
circumstances, may be seen from a few examples. At one build- 
ing a recent roof repair ^vas made improperly. The roof has 
leaked since, causing the ruin of a considerable amount of plas- 
ter. In another building a steam fitting job was improperly 
done, causing a direct waste of steam, which waste should have 
been obvious from the very method of connection. Several in- 
stances of poor wiring and of poor location of lights and 
switches were also noted. In fact, a good deal of recent electric 
wiring has been done in a manner no longer regarded as safe. 

78 



Approval of Bills. 

Bills for repairs done by contract are said to be checked 
against the bid prices. Bills for repairs on open order are usually 
not checked at all. In the first place, they are frequently not 
itemized as to labor and materials; in the second place, even 
if they are itemized, there is no way to check them except in the 
case of some of the summer jobs which are closely supervised. 
Bills for painting during the last summer were 0. K.'d by the 
inspector, but these were the only ones so checked. 

The checking of bills for materials used and for labor in con- 
nection with adequate inspection of repairs for quality of work 
is believed to be essential for control over these repairs. 

Summary and Recommendations. 

It is evident from the foregoing description of condi- 
tions in the Harrisburg school system with reference to certain 
fundamental principles of good business management that the 
school board is greatly in need of a more effective procedure for 
handling its repair work. It is also evident that the administra- 
tive organization of the board as at present constituted would 
not be able to establish the procedure recommended throughout 
this report. 

It is therefore recommended, first, that consideration be given 
by the board to the appointment of a superintendent of build- 
ings and grounds. The need for such an administrative officer 
to properly supervise building operations is developed in the 
next section of this chapter. 

Recommendations on repair procedure are summarized as 
follows : 

1 — That the board adopt the general policy of deciding upon 
a yearly financial program for repairs and not upon the 
merits of individual needs except in unusual cases which 
might arise from time to time. As a general rule re- 
sponsibility for undertaking repairs should be centered 
in the superintendent of buildings. 

2 — That estimates of cost be made before individual jobs and 
the repair program for any year be decided upon. 
79 



3 — That the superintendent of buildings and grounds be au- 
thorized to direct and supervise all repair work, includ- 
ing the actual ordering, inspection and the approval of 
bills. 

4 — That a uniform method be adopted for the reporting of re- 
pair needs to the superintendent of buildings and 
grounds, and that standard forms be adopted for this 
purpose. 

5 — That authorizations to contractors to make repairs be ac- 
companied wherever possible by specifications or care- 
fully written instructions ; that standard forms for re- 
pair orders be used. 

Janitorial Care and Operation of Buildings 

The Magnitude of the Operating Problem. 

The magnitude of the problem of janitorial care and opera- 
tion of school buildings in Ilarrisburg is indicated by the fol- 
lowing items of expenditure for the year 1915-1916: 

Janitors' salaries $27,754.00 

Fuel, • 12,239.00 

Electric light and power (estimated), 2,800.00 

Removal of ashes (estimated) , 650.00 

Water rent, 650.00 

Cleaning supplies, 1,479 . 00 

Disinfecting and miscellaneous supplies (estimated), 528.00 

Total, $46,100.00 

If to this total is added the $19,000 estimated for building re- 
pairs, the grand total for operation and maintenance of the 
physical plant becomes in round numbers $65,000. 

Essentials of Administration Relating to Plant Operation. 

The degree of success attainable in the care and opera- 
tion of a large number of scattered buildings, such as constitute 

80 



the Harrisburg public school system, is believed to be dependent 
upon the joint establishment of two kinds of control, namely, 

1 — Local disciplinary control by the principals, the primary 
purpose of which is to secure proper attention by the 
janitors to the cleanliness of the buildings, their heat- 
ing and ventilating, and those other features of care and 
operation which contribute to the educational efficiency 
of the buildings. 

2 — Central technical control. tl)(^ primary purpose of which 
is to standardize janitorial practice throughout the en- 
tire system and to effect economies in the operation 
and care of the plant. 

Local Control By the Principals. 

At the present time principals are authorized by the rules of 
the board to exercise immediate supervision over the janitorial 
service. This supervision is, of course, necessary in order that 
the buildings may properly serve the educational purpose for 
which they are intended. 

Interviews with iiKiny principals indicated that in a ma- 
jority of cases they are fairly well satisfied with the janitorial 
service. Enough complaints were made, however, and enough 
cases of unsatisfactory conditions were observed to warrant the 
belief that considerable improvement could be made in certain 
schools, and that a general ''toning up" throughout the entire 
system could be effected. 

Principals Should Report on Janitorial Service.* 

At the present time the l)()ard has no records whatever show- 
ing the operating conditions or the quality of janitorial service 
in the various schools. The entire system is run, at least in 
effect, upon the assumption that all is well unless specific re- 
ports are made to the contrary. Various operating records are 
suggested from time to time in this report. Among those con- 
sidered of fundamental importance is a monthly report to be 
made out by the principal of each school. A suggested form for 
this purpose is included in Appendix "C" (See Form No. 5). 

81 
C of C— 6 



It is believed that the tilling out of records of this kind by the 
principals would give them an added sense of responsibility for 
the physical condition of their buildings, as well as a suitable 
opportunity to record their ideas. Also the moral effect upon 
the janitors should help to elevate the standards of janitorial 
service. 

Cciilral Coiifrol Ov< y JaiiHors and Plant Operation. 

At the present time there is no central supervision over 
plant operation other than the rather loose -occasional super- 
vision exercised by the building committee. 

It is believed that effective central supervision should include 
the following elements: 

1 — Control over personnel, by which is meant efficient meth- 
ods of securing and retaining the type of janitorial help 
desirable for the service. 

2 — Standardization of janitorial practice including — 
a — Janitorial compensation, 
b — The use of fuel and miscellaneous supplies. 

3 — Janitorial instruction. 

■I — Fre(|uent regular inspection of buildings. 

5 — Oi)erating reports and records for analysis and compara- 
tive purposes. 

Methods of Appoiniing and Fdaliiinej Janitors. 

At the present time the method of appointing janitors 
seems to be very irregular and not entirely free from political 
influenc(\ The "following is an illustration of the erratic man- 
ner in which a recent janitorial vacancy was filled: 

The janitor of a school having resigned, it was first decided 
by the board to try a certain man for a period of thirty days. 
It was then decided to hold an examination and several appli- 
cants were so notified. xVn examination Avas held by the engi- 
neer of the Technical High School, with the result that one man 
received a rating of 70 per cent, and another man a rating of 
37 per cent. The results of this examination Avere announced 
at the ^lext meeting of the board, but no definite action was 

82 



taken because all of the members were not present. Before the 
next meeting of the board an application for the vacant posi- 
tion was made by an assistant janitor at another school. At a 
later meeting of the board, at which all members were present, 
a motion was made by one member that the "70 per cent, man" 
be appointed; a second resolution was offered by another mem- 
ber that the "37 per cent, man" be appointed. It was finally 
decided to hold another examination. No further mention of 
this case is made in the minutes. The men formerly employed 
as assistant in another school was appointed and at the present 
time holds the position. 

Examinations as a Basis for Janitorial Appoinhnents. 

All janitorial appointments should be based on examina- 
tions covering : 

1 — The practical ability of the applicant to fill the position 
in all its details. 

2 — The physical and moral fitness of the applicant. In this 
connection it is believed that a precautionary measure 
well worth taking is an examination by tlic medical in- 
spector of the board. 

3 — A probationary trial of a month or so, during which time 
the applicant should be carefully observed by the prin- 
cipal as well as by a central administrative officer. 

Service Becorels for Janitors. 

Reference has already been made to the value of reports 
on janitorial service submitted by principals. It is obvious that 
the elements of personality, viewpoint and the efficiency of the 
principal in securing co-operation by the janitor may enter into 
such records. It is therefore desirable from an administrative 
viewpoint that these records 1)e supplemented by an independ- 
ent record made by an administrative officer responsible for the 
central supervision of plant operation. The two ratings of the 
janitor so obtained should then be combined. 

83 



standardization of Janitorial Practice. 

Standardization of janitorial practice relates especially 
to two things: 

1 — Janitorial compensation. 

2 — Use of fuel and iniscellMneons supplies. 

Such recommendations as are made in connection with stand- 
ardizing janitorial practice are made with a full appreciation of 
the numerous local influences which tend to make the care and 
operation of each school building a problem in itself. Stand- 
ardization of practice, as the term is here used, is not a set of 
hard and fast rules to be applied indiscriminately to all con- 
ditions, but rather a general revision and improvement of con- 
ditions throughout the entire system in which due considera- 
tion would be given to local circumstances peculiar to each case. 

JanitorinJ Compensation. 

In the absence of exact information regarding the labor 
situation in Harrisburg. no appraisal was made of the rates of 
wages paid to janitors. Examination of conditions in a num- 
ber of school buildings leads to the belief, however, that read- 
justments of compensation should be made in several cases. 

Janitorial compensa.tion in each case should be for the posi- 
tion, and not for the particular janitor. Rates of compensation 
should be based upon several factors, the more important of 
which are as follows : 

Floor area to be cleaned. 

Mechanical equipment to be operated. 

Conditions peculiar to the school and the neighborhood. 

Length of satisfactory service. 

Overtime. 

Closely related to the question of janitorial compensation is 
the reimbursement of the board for use of auditoriums and va- 
rious rooms. Rates should be so fixed that at least no loss 
would be sustained by the board for the use of its facilities. A 
number of rooms at the Technical High School are used for the 

«!4 



iiight classes of a local braueli of the University of Pennsyl- 
vania at a considerable expense without compensation to the 
board. It is understood that the instruction given by tne uul- 
A'ersity is paid for. 

The Shimniel building is used occasionally in the evenings 
by local organizations, the janitor being paid for his services 
directly bj- the organizations. No criticism is made of the free 
use of this building by these organizations, as such use may be 
in the interest of good public policy, but it is believed that tlie 
janitor should be paid through the board for his services at a 
standard rate. 

Use of Cheaper Grades of Fuel. 

The amount of the fuel bills of the board depends upon 
two things: namely, the kind of fuel used (which practically 
determines price) and economy in its use. Analysis of the coal 
records shows that about 70 to 75 per cent, of the coal used is 
pea coal, which, on the whole, is probably the cheapest fuel 
which can be burned in the plants of the board. 

Suhsfifiiiion of Pea Coal for Large Sizes of Anihracite: 

It is believed that the use of pea coal can be extended in 
some of the schools where more expensive grades ar now being 
burned. The amounts and kinds of coal used in some of these 
schools during 1 915-191 fi. are shown in the following table: 



Willard. 


Name of School. 


Stove 
Tons. 

61 


Egg- 
Tons. 

51 

80 


Bi-okon 
Tons. 


Stevens. 






Downev, 






Harris. 




80 


Fornev. 




86 


3 Facia v. 




65 




Total 






61 


131 


231 



111 all of these schools mixtures of the larger coals with pea 
coal, in which 50 per cent, or more would be pea coal, could be 
bunied. Th(> economies wliich wonld rt^snlt are shown below: 



85 



stove. Egg. Broken. Pea. 

Cost per ton, 1916 $6.08 $5.83 $5.58 $4.23 

stove & Pea. Egg & Pea. Broken & Pea. 

Cost per ton of mixture. $5.35 $5.03 $4.90 

Difference in cost per 

ton, .93 .80 .68 

Net saving on the basis 

of 1916 tonnages, ... $57.00 $105.00 $157.00 

It will be seen from these figures that in these six schools the 
minimum saving would be about $319. 

Fuel Ecovomy at the Technical High School: 

It is understood that bituminous coal was formerly 
burned at the Technical High School. Subsequently, a sys- 
tem of mechanical draft was installed for the purpose of burn- 
ing river coal. The use of this coal was. however, unsuccessful, 
partly because the contractor did not mal?e regular deliveries 
and partly because it was found that river coal alone could not 
carry the heavier loads. Last year it was decided by the board 
to burn pea coal in this plant. At the time the plant was vis- 
ited it was found that a mixture of No. 1 buckwheat and river 
coal, or barley, was being burned because the contractor could 
not obtain pea coal. It is believed that the most economical 
fuel for this plant would be a mixture of river coal or No. 3 
buckwheat (barley anthracite) and s(^mi-bituminous in ratio 
to three to one. 

The economy of such mixture depends primarily upon the 
very low price for the small sizes of anthracite. The bitumin- 
ous is necessary, however, to insure proper combustion of the 
anthracite. 

These coals may be mixed while being filled into the bins by 
the simple method of having three loads of anthracite delivered 
to every load of bituminous (all being of the same weight). By 
the time the coal is shovelled into wheelbarrows and fired it 
should be fairly well mixed. The soft coal in the mixture forms 
a sort of matrix causing the fuel to cake to some extent. This 
prevents holes in the fire through which air passes in large 

86 



quantitit's, leaving other parts dead, as is eoiniiiou where the 
very small sizes of anthracite are used alone. This mixture can 
be burned entirely without smoke and causes no added burden 
to the fireman. 

If the price of bituminous coal is too high tliis year to war- 
rant its use in order to make possible the economy of burning 
the very fine anthracite, then No. 1 buckwheat or a mixture 
of No. 1 buckwheat and river, or No. 1 buckwheat and No. 3 
buckwheat, should lie used. l)ut in no case should pea coal be 
used straight as w^as decided upon last year. The price of pea 
coal in normal times is about $1 per ton more than the price 
of No. 1 buckwheat. 

Ecoiioinifs in the Use of Fuel. 

Comparison of the fuel consumption in the Harrisburg 
schools with the school population, shows that the average an- 
nual consumption of coal per pupil in average daily attendance 
has been between 680 and 750 pounds in the last three years. 
A similar comparison has been nmde in another city where condi- 
tions were studied, as they were in Harrisburg, and the result 
showed an average annual consumption per pupil in average 
daily attendance of about 500 pounds. In this particular city 
the janitorial forces were under nuich better control than in 
Harrisburg, but on the other hand, there was a large preponder- 
ance of schools with auditorium, gynuiasiums and special rooms, 
nmking the ratio of cubic feet to be heated per pupil rather high. 
Furthermore, a large number of the schools in the city — fully 25 
per cent, of the total — were used for night sessions. 

The limitations of a comparison of this kind are recognized 
and it is not claimed that these figures indicate a ])ossible sav- 
ing of 30 per cent, in the amount of coal burned in the Har- 
risburg schools. It is believed, however, that this comparison 
is indicative of a situation in Harrisburg which can be greatly 
improved. This improvement may be partly a matter of operat- 
ing economy and partly a matter of installing a better grade of 
plants in new schools. 

No special stndy was madi^ of the comparative economy of 
using fuel in the various scliools in Ifai'i'isburg. since figni'es on 

87 



the tounagc's used iu any one season in the individual schools 
were not avai-lable. Figures on deliveries during the past two 
years were obtained with much labor, but since these were not 
adjusted for stocks on hand they did not coincide ^^^th actual 
consumption. 

Use of Electricity. 

The use of electricity in the Harrisburg schools varies 
widely. Very few of the schools are properly equipped 
throughout with electric liglit. the use of which is essential dur- 
ing the dark hours of about forty odd days in a school year. 
Some of the rooms contain more than their quota of lights ; oth- 
^ers have none at all. In several cases observed, lights were 
too high to be of much use. This is especially true in the Penn 
school, where dependence is still placed on the gas lamps which 
the electric lights were sup])osed to replace. Incidentally, of 
the $82 gas 1)111 for last year. $20 was for maintenance of the 
lamps. 

In several recent installations no shades were provided for 
throwing the light down. A considerable number of old car- 
bon lamps ar(> still in use. 

Inspection of bills bears out the claim that the use of electric- 
ity varies widely. In one four-room Imilding in which only two 
rooms are now in use, the bill for ten months was $89.53, or prac- 
tically $45 per room. In another building of ten rooms the bill 
for a similar period was $153.73. or $15 per room, while in no 
less than a half dozen schools, on the other hand, the bills con- 
sisted of the minimum charge of $1 per month for all but two or 
three months in the year. 

The use of power is .just as widely divergent as the use of 
light. In one eight-room building the power bill for a ten 
horsepower motor running a fan was $215.48 for ten months. 
During one month alone 1390 K. W. hours were used in this 
building. In another eight-room building of similar design the 
greatest amount of power used in any one month was 380 K. W. 
hours. In two other eight-room buildings the greatest amount 
iisi'd pel' luonth in either was only 29 K. W. hours. 

88 



liills for electrieity are never cliecked; in fact, no one in the 
office knows tin.' rates or the connected load ratings of the differ- 
ent bnildings or the methods of eoinpnting the bills on the basis 
of meter readings. The checking up of a month's bills ought 
not to tal-:e more than fifteen to twenty minutes. 

The need for standardization regarding artificial lighting of 
schools and the use of electricity for light and power is evident. 

Vsc of Supplies. 

The expenditure for janitorial supplies during 1915-1916 
Avas $1,479. This does not include, however, an item of about 
$256 for disinfectant bought by the building committee. A de- 
tailed study of the use of janitorial supplies \i\ twenty-six 
schools, representing a total of 289 classrooms, showed that the 
average cost per classroom was $3.73, on the basis of supplies 
bought on the approval of the supply committee, and $•4.85 in- 
cluding ''Sanaform" and some miscellaneous supplies bought 
on the buikling committee's recominendations. 

ft is believed that these unit costs are high. Furthei- analysis 
of unit costs in different schools showed a wide variation in the 
use of supplies. In one school the cost of supplies delivered per 
classroom was $8.10 ; in four others it was over $6. On the 
(tther hand, it was less than $3 in ten schools, the lowest unit 
eosts recorded being $1.60 and $1.80. It is understood that ex- 
treme variations may be due to the fact that in some schools a 
considerable stock was on hand at the beginning of the year and 
that in other schools requisitions l)y the janitors were in excess 
of the current year's requirements. It is further appreciated 
that the location and environment of several of the schools 
greatly infiuence the amount of various supplies which must be 
used. 

There seems to be no doubt, however, that the use of janitor- 
ial supplies would be a subject for fruitful study. Particular 
attention is directed to the use of certain special sn])plies. such 
as disinfectants and boiler compound. 

Recent aiuuial ])i]ls for disinfectants and special equipment 
connected witli tlieir use are summarized in llie following talile: 



Item. 

Formaldehyde and potassium 
permangcinate, , 


I'.ti-). 

$92.00 
448.00 


YEARS 

1915. 

$256.00 


1916. 


Sanaform and hydroclean. . . . 
Sanaform 


$256.00 


Formaldehyde fiimigators, . . . 




238.00 





Totals, $540. 00 $494. 00 $256 .00 

The large amounts used in 1914-1915 were due, so it is 
claimed, to the wretched condition at that time of many of the 
toilets throughout the system. A special effort was made to 
improve on the conditions during those years. With the toilets 
in better shape the annual expenditures for special disinfectant 
may be taken at about $250 per year, as shown by the 1915-1916 
figures for Sanaform. It is evident, from interviews with .jani- 
tors, that Sanaform is generally liked and that there are no seri- 
ous objections against its use, but several of the janitors seem 
to question the need for this disinfectant. It is known that in 
some cities toilet bowls and urinals are kept in good condition 
6y flushing them with a hose several times a day and with 
only an occasional use of a disinfectant. It is quite likely that 
the condition of some of the very old toilets in some of the Har- 
risburg schools justifies the use of an expensive disinfectant — ■ 
Sanaform costs $1 per gallon,— but it is believed that the fix- 
tures of many of the newer installations can be kept sweet and 
clean by frequent flushing Math water. This practice would re- 
sult in a considerable saving. 

During the year 1915-1916. $235 was spent for boiler com- 
pound which was used in not more than a half dozen schools. 
It is not the idea so much to criticize the selection or the price 
paid for this compound, as it is to raise the question as to why 
it should be necessary to use it in a few schools when all of the 
schools in the system use the same water in the boilers. It is 
further desired to call attention to a very simple remedy to pre- 
vent the adhesion of scale to the boilers. A small amount of 
powdered graphite should be stirred into several pints of kero- 
sene, or heavier mineral oil. This is then to be fed to the boiler 

90 



after the heating surfaces have been cleaned. The boiler is to 
be tilled entirely with water (this cannot be done, of course, 
while there is any load on the boiler) and then blown down. 
The oil and graphite wdll adhere to the heating surfaces of the 
boiler, forming a film, which prevents adhesion of scale. Such 
scale as may collect in the boiler from time to time may then be 
easily removed by scraping and brushing. 

Jauilorial Inslrurtioii i)i ihc Cave and Operation of Buildings. 

The standardization of janitorial practice makes neces- 
sary the instruction of the janitorial force as an element of good 
management. A certain amount of in.struction can be embod- 
ied in carefully prepared rules supplemented by general orders 
from time to time, but a considerable amount of valuable infor- 
mation regarding plant operation can be imparted only by 
means of personal instruction. Furthermore, personal contact 
between janitors and the administrative officer responsible for 
the general quality of janitorial service develops an esprit de 
corps among the men and fosters a spirit of inten^st in their 
work as no other means can. 

Janitors as a class have had no considerable amount of exper- 
ience in running any kind of a plant. What knowledge they 
have is instinctive rather than exact. This is brought out by 
the odd notions some of them have on the proper care and opera- 
tion of mechanical equipment. Some of the janitors are eager 
enough to learn proper methods, but facilities are limited and 
there is no incentive. At the present time the position of janitor 
is an isolated one ; nobody is especially interested in his prob- 
lems, and the result is that he soon develops the habit of doing 
just as little work as he can without being called to account. 

The need for janitoi-ial instruction, in fairness to the men. 
as well as for the purpose of effecting economies, may be illus- 
trated by the following cases. Tn a ci^rtain school it was found 
that the janitoi- was not running the pumj) intended to return 
the condensed steam from the heating coils to the boiler. All of 
the condensate was going to the sewer, with a loss in heat of per- 
haps 10 to 12 per cent, in addition to the direct loss of water. 
When the janitoi- was (|uestioiuHl the fact develop(^d that the 

91 



boiler was being ruu at a pressure too low to operate the pump. 
The janitor explained that the boiler inspector on his previous 
visit had remarked upon the age and deteriorated condition of 
the boiler and had given him the impression that it was unsafe to 
run the boiler except at a very low pressure. A letter of inquiry 
addressed to the boiler inspector brought back the answer that 
in his opinion it would be entirely safe to run the boiler at the 
higher pressure. The waste incidental to the method of opera- 
tion adopted by the janitor on his own responsibility had not 
occurred to the janitor himself. 

In several of the buildings visited room temperatures as high 
as 75 to 80° were observed. Overheating of rooms is generally 
recognized as having an undesirable effect upon the health of the 
pupils and greatly reduces the efficiency of their mental pro- 
cesses. Incidentally, it is wasteful of fuel. 

In one of the schools where the rooms were unduly warm and 
the windows all closed, a recess occurred during the visit but no 
windows were opened to relieve the stuffy conditions. Several 
teachers were asked if they did not think it wise to open the win- 
dows. The answer was that the janitor did not like to have 
them do so because in that way the ventilating system became 
unbalanced and heat was lost to the outside atmosphere. 

General observation of operating methods, supplemented by 
talks with janitors, in which reference was made to various mat- 
ters of a technical nature, indicated that some of the janitors 
have their own peculiar notions about economical methods of 
running a plant. In one building the vacuum cleaner provided 
Avas used almost entirely for cleaning floors ; in another build- 
ing a similar cleaner could be used, so the janitor stated, only 
for cleaning the halls. The janitor of one school gets rid of his 
paper by burning it in the furnace. , This is a bad practice, since 
pieces of paper only partially burned collect in the chimney and 
are apt to give rise to chimney fires. In another school the jani- 
tor finds it easier to gather his paper in a bag and burn it in a 
nearby lot than to bale it in the machine provided. In some 
of the buildings the janitors make quite a few repairs; in others 
even the simplest ones are not attempted. In one building, in 
fact, tlie ]irincipal stated that she had to do quite a few things 
wliieh till' janitor ought to do. 

92 



Frequent Inspections of Builelinejs Desirable. 

Reference has been made to the need for and to cerlaiu 
means of establishing effective central supervision of l)uilding" 
care and operation. It is highly important for an administra- 
tive officer in general charge of an extensive physical j^lant to 
be familiar at first hand with all the physical details of the 
plant and the ramifications of operation. Such intimate infor- 
mation can be obtained only by frequent visits and personal ob- 
servation of tlie conditions in the different plants. These visits 
tend also to keep the janitors on the alert and in that way to 
elevate the morale of the force. Another advantage of frequent 
inspections by the man in charge of buildings is the detection of 
need for repairs before the.v grow to an extent which makes 
them very expensive. 

Reports on Plant Operation, Comparative Operating Data and 
Equipment Records Desirahle. 

In the scheme of organization proposed in this report respon- 
sibility for the car(^ and operation of a single school plant rests 
with three individuals, namely, the janitor, the principal and 
the superintendent of buildings. It is essential that each one of 
the three record currently such data on operation as represents 
his particular interest and responsibility. A form for monthly 
]-eports by principals has already been suggested (See Fonn No. 
5 in Appendix "C"). It is important that certain items of ac- 
tual operating information be recorded currently, and inciden- 
tally that janitors be given opportunity to record their side of 
the operating problem. The moral effect upon the janitors them- 
selves of having to make even the simplest reports cannot be 
valued too highly. A form (No. 6 in Appendix "C") is offered 
as a suggestion of some of the items on which janitors should i-e- 
port. This form is for a monthly report but the items of daily 
occurrence should be filled out daily. Only one copy at a time 
should be given each janitor. It should be hung on a board^ in 
the janitoi'"s i-oom or any other suitable place wher(^ it can be 
readily inspected. 

A superintendent of buildings and gi'ounds is interested es- 
pecially in the comparative costs of operating different school 

93 



buildii>gs in the system. A list of column headings suitable for 
a large table, showing the comparative operating economy of the 
various schools, is given in Appendix "C" in Exhibit No. 7. It 
is important that the schools of the different types be grouped 
in such a manner that the cost data of one school may be com- 
pared with those of similar schools. The several groups of 
schools nmy then be compared on the basis of operating costs for 
the different types. The physical data to be tabulated can be 
obtained during visits and inspections and at odd times. The 
importance of data of this kind as a guide to intelligent grap- 
pling with the problems of operation cannot be overestimated. 
It should further serve as a guide in the selection of the better 
types of equipment in new installations. 

Physical plant data is not complete without records for hn- 
portant items of mechanical equipment. These records should 
include the following data : Location, size, type, rated capacity, 
date of installation, important dimensions, name of manufac- 
turer and important parts and auxiliary apparatus. Such data 
is of great value in connection with the ordering of repairs, new 
parts, etc. Equipment records are frequently kept on cards, 
one side being used to record general data, and the other side 
being used to record the dates and costs of important repairs. 

i^iiniiiuirij and Bfcom.mendatious. 

The need for better control over the care and operation of 
the physical plant of the system and possibilities for effecting 
economies have been discussed in detail. As in the case of build- 
ing repairs, it is believed that the first consideration of the board 
should be directed toward the appointment of an administrative 
officer on whom responsibility for results can be placed. 

It has been shown that the maintenance and operation of the 
Harrisburg school plant involve an expenditure of at least $65,- 
000 per annum. It is believed, therefore, that the school board 
would be fully justified in employing a thoroughly competent 
superintendent of buildings and grounds. Such an officer should 
not only have an intimate knowledge of building and equip- 
ment repairs, based on wide experience along these lines, but he 
should also have a very fair knowledge of engineering econ- 

94 



omies as applied to the mechanical plants in the various build- 
ings, lie should have above all the faculty of management and 
the personality to secure a high degree of cooperation on the 
part of the janitorial force. 

Recommendations on the operation of buildings are summar- 
ized as follows : 

1— Janitorial appointments should be on the basis of exami- 
nation, including a physical examination by the medical 
oificer of the board. 

2— Service records of janitors should be kept. These records 
should be based upon regular monthly reports by the 
principals and upon the opinion of the superintendent 
of buildings. 

3 — Janitorial compensation should be based upon service ac- 
tually required. 

4 — Janitorial practice should be further standardized with 
reference to the use of fuel, electricity, cleaning and 
miscellan(Mius supplies. Extensive economies should re- 
sult froui this standardization. 

5 — Pea coal should be substituted in part for the large sizes 
of anthracite in certain of the schools ; mixed fuel 
should be used at the Technical High School. 

6 — Janitors should be given instruction in the care and opera- 
tion of buildings. 

7 — Frequent insjiections of buildings should be made. 

8 — Reports on operation of plants should be made by janitors. 

9 — Comparative operating data of the various plants should 

be kept. 
10 — Equipment records should be kept. 

Some Conditions in Buildings Which Should 
be Remedied 

The general repair and operating problem of the Ilarrisburg 
school board has been discussed with particular reference to 
questions of organization and procedure. Recommendations and 
suggestions have been made which should establish an orderly 
procedure for dealing with the various building problems, place 

95 



responsibility for results in an individual qualified to handle 
these problems and result in substantial economies to the board. 
It is desired to make a brief mention of some conditions found 
in the Ilarrisburg schools which it is believed should be elimi- 
nated or greatly improved. 

It was found that the board has remedied a large number of 
defective c(mditions in buildings in recent years. Some of these 
conditions were called to the attention of the board by various 
inspection agents, such as the state factory inspectors and the 
boiler inspectors. Other improvements have been made on the 
initiative of the board itself. That the board has been alive 
to the importance of safe conditions, is shown by the attention 
which has been given to such things as fire extinguishers and fire 
drills — a few of which were observed. 

So many of the Harrisburg school buildings are of old style 
wood construction that extra precautions are necessary in order 
to provide reasonably safe and sanitary conditions for occu- 
pants. In fact, not a few of the oldest buildings are in such 
condition, with reference to safety, sanitation and general fit- 
ness for occupancy, that they should be abandoned. 

Buhhish. Ohl FiD-iiifitrr and ihe Lihe Should Be Eemoved from 
B uildings. 

Large amounts of rubbish, old furniture, .iunk and the 
like were found in the basements of a number of schools. In 
some cases furniture was found stowed away in classrooms not 
in use. In one school a considerable amount of rubbish was 
found in the fresh air chambers, one of which had a decidedly 
musty odor. The presence of such articles in large quantities 
about the buildings is undesirable as they constitute a decided 
fire risk and render the buildings more difficult to keep clean. 
Some of these articles, for example, old pieces of machinery and 
equipment of various kinds, can probably be disposed of to ad- 
vantage. It is quite likely that a considerable amount of the 
furniture can be used, but many of the articles Avill have to be 
destroyed. 

Old paper should be collected more often than at present. As 
many as a dozen bales were found in one school and the janitor 

96 



stated that at one time he had as many as thirty on lumd. In 
some schools paper was found loosely piled up on the basement 
tioor and in one school to which reference has ali-eady been 
made, the janitor made a practice of burninpr it in the furnace. 

Closets Under Stairicay.-; SJioidd Be Closed Up Pennanently. 
~~A number of schools were found in which th(M-e were clos- 
ets under stairways. Tn some cases the main exits of the build- 
ing had closets or spaces filled with I'ubbish under them. These 
closets constitute a grave menace in case of fire and should be 
healed up in such a manner that no inflamnuible material of 
any kind could be stored in them. Furthermore, no closets 
should be tolerated under the stairways in new buildings. Even 
though the stairways may themse]v(^s be fireproof, the panic 
hazard due to smoke rising in the staircases is not diminished.. 

Ceilings Close io BoUer Flues Should Be Fireproof cd. 

A number of cases were observed in which the eleai-ance be- 
tween a hot sheet iron boiler flue and the wood ceiling above 
was only from a foot to eighteen inches. In some cases the ceil- 
ings were plastered, in others the wood ceilings were entirely 
bare. The danger of fire under these conditions might appear 
to be remote, but a case was observed during a recent survey 
by the Bureau in another city where a fire had occurred under 
just such conditions as those obtaining in Harrisburg. 

It is recommended that in all cases where there is even the 
remotest danger of fire due to a hot boiler flue, a fireproof slab 
be inserted in the floor above the boiler room or that at least 
the ceiling be coverd with a pernument protective sheathing. 

Many of iJie ToUrf I)tst(dl(itions Should, Be Eutircly Replaced. 

A number of toilet installations were found which should 
be entirely replaced. In the case of a certain girls' toilet of the 
range type with automatic flushing, partitions were provided 
onl}^ between groups of two seats, several large screens being 
placed in front of the range in the place of doors attached to 
the stalls. 

In another boys' toilet no Hooi- drain 1o the sewo* was |)ro- 
vided. This mnde it virtually impossible for the janitor to wash 

97 

C of C— 7 



the floor and fixtures with a hose, and whenever an overflow of 
any Ivind occurred it became necessary for the janitor to re- 
move the water with a mop. 

It is recommended that new toilet fixtures be of the automatic 
flushing type previously described, and that no doors be placed 
on the individual stalls of the boys' toilets. 

Sanitary l)ri)iki))fi Fountains Should Be Supplied in All 
Schools. 

Very poor drinking facilities were found in a large num- 
ber of schools. In one, with an enrollment of over 400 children, 
the drinking facilities were limited to a wash basin faucet on 
each of two floors and children were supposed to supply their 
own drinking cups. In another school at which a recess oc- 
curred during the visit, children were observed drinking from 
a common faucet in the bas(^ment. Little children could not 
reach this faucet with their mouths and the janitor had pro- 
vided a small box for them to stand on. Similar conditions were 
observed in several other schools. There is no good reason why 
these conditions should exist. The cost of supplying proper 
drinking fountains is not a large one. 

f'lotli Filters Should Be Placed Over Fresh Air Iidets. 

Several of the Harrisburg schools are provided with a 
fan system of hot-air heating. In only one ease has provision 
been made for a filter to remove particles of dust from the fresh 
air. Nearly all the fresh air intakes are located close to the 
ground level. In some cases, notably at the Technical High 
School, dust from an adjoining street may be blown into the 
inlet. That considerable amounts of dust are blown into the 
rooms with the fresh air, was evident from the discoloration on 
the classroom walls about the fresh air inlets. 

Reference has already been made to the desirability of air 
washers as a part of all new ventilation installations. A cheese 
cloth filter is admittedly a poor substitute for an air washer 
and not entirely sanitary, but all fan systems should at least 
be ]irovid('d with this po<n- substitute. 

98 



Ill 

PURCHASE, STORAGE AND ISSUANCE OF 
SUPPLIES 

Organization 

Present Organization. 

Although the probU^in of purchasing, storing and issu- 
ing supplies has in a general way been delegated to the secre- 
tary, who in turn has delegated certain functions to a clerk, 
still the real authority rests in the board, operating through its 
conniiittees. The committees are the actual Iniying officials. 
They approve all purchase orders and contracts, suggest modes 
of purchasing, etc. The purchasing clerk, acting for the secre- 
tary, h^s onlj^ very limited powers. His powers are in fact so 
small that he is really no more than a secretary to the commit- 
tees having to do with the purchasing. Aside from committees, 
the entire force having to do with the purchase, storage and 
issuance of supplies consists of one full-time clerk and one part- 
time laborer. The laborer is used almost entirely in deliver- 
ing supplies to the various schools, and in packing, unpacking 
and storing supplies at the central storeroom. 

The functions ordinarily belonging to the office of a purchas- 
ing agent or storekooper have been delegated in such an in- 
definite manner that responsibility for the proper performance 
of such functions is sadly lacking. It should be added. hoAv- 
ever, that considering this absence of real responsibility and 
the lack of incentive which usually accompanies lack of re- 
sponsibility, the work of purchasing, storing and issuing sup- 
plies has been fairly well handled. Many points criticised in 
the following paragraphs have long been recognized by those di- 
rectly connected with these functions, but they have been with- 
out sufficient authority to make the desired changes. 

Proposed Reorejanisation . 

Nearly every phase of the study of the purchasing prob- 
lem of the Harrisburg school district as discussed below discloses 

99 



the need of some one official who can relieve the board commit- 
tees of much of the work noAv attempted by them, and who 
should be held responsible for all purchases and for the care 
and distribution of commodities purchased — in other words, the 
need of one real purchasing agent. The purchasing problem in 
itself is not large enough to require the full time of anj^ one 
official. Neither are the duties of storing and issuing supplies 
extensive enough to warrant a special position of storekeeper. 
It is believed, however, that the combined work of these two 
positions is large and important enough to warrant the crea- 
tion of such a joint position. 

It is therefore recommended that the board authorize the 
position of purchasing agent and storekeeper, to be attaclied 
to the office of the secretary. 

A purchasing agent necessarily exercises considerable power, 
and the appointment should be made only after ample delib- 
eration. If he is watched and controlled, he is more likely to 
be efficient and careful than inefficient and wasteful. Un- 
watched, he may remain efficient, but may become corrupt ; if 
allowed to become careless, he has abundant opportunities both 
for inefficiency and corruption. However, no purchasing .agent 
can either do himself justice or bring about the best results if he 
is unduly hampered or bound 1)y petty restrictions. In the past 
the board has endeavored to concern itself with every little pur- 
chase. If a purchasing agent should 1ie appointed, he siiould 
be free to exercise his own judgment in all matters on which 
either the board as a whole or individual members are not quali- 
fied to pass expert opinions. If the right kind of a man be 
appointed, he himself would ho the first one to wish to refer to 
the board for advice or assistance. lie himself would be apt to 
urge the establishment of limitations to his own powers which 
might well be defined by the size of contracts or orders. AVhen 
the powers of such an official have been so defined, he should 
be unhampered in his duties, but in turn he should be held 
strictly accountable for results. It is firmly believed that the 
greatest improvement in the purchasing methods of the Harrs- 
burg school district are possible through the elimination of the 

100 



board suiHTvision of ])urohas('s and the definite location of such 
responsibility with one efficient employee. 

Thi" creation of the proposed position does not necessarily 
mean a corresponding increase in expense. Much of the work 
properly lielonging to such a position is now being ably per- 
formed 1)y the one purchasing clerk. An increase in authority 
and responsibility would not necessarity greatly increase the 
work. Likewise, the recommendations made in this section of 
the report would not increase the need of laborers, except per- 
haps thi^ permanent employment of the one man who now de- 
votes the greater part of his time to working for the board. 

Purchasing 

General rurchashuj Procedure. 

The board has adopted a rule whereby every purchase 
must }w approved by a committee of the board before the sec- 
retary may issue the official order. Except in rare emergen- 
cies, this rule is observed. The board has also adopted a rule 
whereliy liids shall be asked for on every purchase the estimated 
amount of which is over $300. As a matter of fact, bids are 
a.sked for on many purchases amounting to much less than $300. 

Fuel, text books, general educational and office supplies, labo- 
ratory eciuipment and supplies, printing, janitor supplies, etc., 
in fact, almost all supplies needed b.y the school district with 
the exception of repairs, emergency and contingent items, are 
purchased before or immediately after the beginning of each 
fiscal year. Estimates of quantities to be needed for the entire 
ensuing year are requested of the heads of all divisions of the 
school district usually during March and April. These esti- 
mates are assembled according to the general class or nature of 
supplies on separate schedules which are sent to several deal- 
ers, with the request that they submit bids on any or all items. 
Tn this way approximately 90 per cent, of the entire purchases 
are made on or about the beginning of each fiscal year. 

In every case, however, the purchase order is prepared by 
the secretary and submitted for approval to the proper com- 
mittee of the board 1)efore being issued. When approved, the 

101 



original copy of the order is sent to the vendor, the duplicate 
being retained by the secretary. 

The procedure adopted of securing detailed estimates or re- 
quisitions of supplies to be needed for each fiscal year is a good 
one. These estimates appear to be prepared after a careful 
study, and so may be used conveniently both in preparing the 
budget and in purchasing in quantities large enough to take ad- 
vantage of lower prices. 

For various reasons, but primarily because of the lack of a 
suitable storehouse, it has become customary to purchase only 
those exact quantities shown in the estimates. For example, if 
871 books of a certain kind were requested by the several princi- 
pals, the purchase order placed would usually be for that exact 
quantity. While it is true that most of the principals make an 
allowance for emergencies and unforeseen conditions in pre- 
paring their estimates, still it is also true that these estimates 
sometimes fall short, with the result that supplemental requisi- 
tions must be made. In such cases no difficulty is experienced 
providing the books or supplies requisitioned if they should 
happen to be available in the central store. However, this is 
not always the case. Hence supplemental purchase orders must 
be prepared. The present procedure, which requires official 
sanction of the supply or of the building committee and of the 
board as a whole before the order is placed, is not Avell adapted 
adequately to meet such emergencies. In fact, it might easily 
take from four to six weeks to secure supplies or books which 
were wanted for immediate use. Such delays are not always 
avoidable where the supplies or books requested are of an un- 
usual nature, but they are unnecessary and in many instances 
expensive when the supplies wanted are articles provided in 
the standard classification. Examples have been cited where 
the introduction of a regularly prescribed course of instruc- 
tion has been postponed or greatly inconvenienced through de- 
lay in obtaining additional text books or supplies. This seems 
entirely unnecessary, especially in view of a ruling that a text 
book once adopted shall not be discontinued or discarded for a 
period of five years. Under such conditions it is false economy 
1'i '-nnfine th(> jnirchase of standard articles to just the qunntity 

102 



specified in estimates made months prior to the beginning of the 
school year. 

It is therefore recommended that standard books and commod- 
ities be purchased in suificient quantities so that a reasonable 
stock may be carried in the general store. While it is, of course, 
inadvisable to tie up large sums in stores, still the quantity pur- 
chased should be large enough to provide for a fair increase over 
the quantity estimated. Any balances on hand at the end of a 
year would be always available and should be considered in pre- 
■paring contracts for the subsequent year. 

Although the secretary actually prepares all purchase orders, 
he is not authorized to issue them until they have been favor- 
ably acted upon by the respective committee of the board. This 
ruling applies not only to the large so-called annual contracts, 
but to the smallest purchase amounting to only a few cents. 
As a matter of fact, this custom or rule is strictly observed, 
except in cases of rare emergency when the secretary arbitrarily 
assiunes the right of is.suing the order rather than incur the 
extra expense or undergo the annoyance which a delay might 
cause. 

The two committees before which most of the prospective pur- 
chases must be presented are the committee on text books and 
supplies and the committee on buildings and grounds. They 
meet only on call, usually about four times each fiscal year. Tt 
can be seen therefore that, theoretically, the bulk of the board's 
purchases must be made not in accordance with actual necessi- 
ties, but more at the convenience of the board. It has been 
stated that members of committees show a willingness to con- 
vene w^henever the necessity is explained, but nevertheless it is 
only natural that the secretary and his employees should hesi- 
tate about asking for special committee meetings. As th(^ result 
of such a procedure, it is evident that many requisitions must 
be unduly held up. No person can antici]iate with any fine 
degree of accuracy the needs of any large department or organi- 
zation for any long periods of time. 

When the committee has approved a request, instructions may 
either be issued at once to the secretary to purchase, or the mat- 
ter may be referred for action to the board as a whole. This 

103 



means an additional delay. There is no nnifoi'uiity as to the 
procedure followed by the committee, the action in many in- 
stances being very inconsistent. For example, a purchase 
amounting' to a hundred or more dollars may be acted upon 
finally by the conuiiittee, while a small purchase of a few dol- 
larse may be referred to the board as a whole. Again, the pur- 
chase of miscellaneous janitors' supplies, the estimated cost of 
which does not exc(H;d $10. may be approved by any one mem- 
ber of the board without action either by a committee or the 
board. All approved requisitions are handed to the secretary 
who alone has the right to issue the official orders. When a 
requisition is once signed by a member, the secretary must make 
the purchase, in many cases of a specially named vendor, 
even if he believes the purchase unnecessary or has other plans 
under way for meeting the request. The board cannot hope to 
operate the school district efficiently unless it employs subordi- 
nates to whom may be delegated the responsibility of at least 
the more unimportant purchases. Janitors' supplies amount- 
ing to less than $10 can scarcely be considered an important 
item. IMoreover. the approval of one memJDer of the board would 
ordinarily have no more relation to the propriety of such action 
than that of a responsible employee in the secretary's office. 

Objections to the present method of requiring board approval 
of all purchases may be summarized as follows : 

It causes unnecessary delays. 

Resulting delays may lead to additional expense. 

There is no consistency in methods of approval or disapproval. 

Board members are not always acquainted with facts. 

Responsibility for efficient purchasing is not definitely lo- 
cated. 

Lack of responsibility leads to indifference. 

Interference with plans is possible. 

It wastes time of board needed for more important matters. 

In view of these objections, which are not conteracted by any 
important advantages, it is recommended that the approval by 
members of the board of the ordinary purchases not covered 
by annual contract or special conditions be entirely eliminated, 
unless such action be desired by the purchasing agent himself. 

104 



Standaydization of Supplies and Specifications. 

The supplies more eoininonly used by the seliool district 
have been grouped aceording to the t'oBowiug main ehisses: 

Text books. 

Janitors' supplies. 

General educational supplies. 

Tlu' various items I'alling in these classes have been standard- 
ized and a rule established that purchases and issues be limited 
accordingly. The board is to be connnended for this standard- 
ization which appears to be lumsually satisfactory to the con- 
suming units and which ought to lead to economy. If the rec- 
ommendations made in this report for the centralization of pur- 
chasing functions be adopted, one of the main duties of the pur- 
chasing offices should be a further study and careful selection of 
standard commodities l)est adapted for the general use of the 
school district, together with the revision and extension of ex- 
isting standards in order tliat they may conform with the chang- 
ing conditions of the district. 

It is evident that a large amount of time and study has also 
been given to the pi'eparation of descriptions of the standard 
articles which are purchased under the so-called contracts. 
AYhile these descriptions cannot in the majority of cases be con- 
sidered as complete specifications adequate for large purchasing 
problems, still considering the lack of centralization of pur- 
chasing functions and the comparatively small quantities pur- 
chased of many supplies the board is to be commended on the 
steps which it has already taken to standardize commodities, 
and to express these standards or brief specifications in terras 
by which a general inspection as to quality may be made. Each 
article bought under the annual contracts is described in some 
detail on the proposal sheets. These descriptions, althoi^gh lim- 
ited in many cases to a trade designation, to an "or equal" 
clause, to a specific analysis, or to merel^y a special qualifica- 
tion, such as "clear and soft," "clear 'for filtering," "good c[ual- 
ity, " etc., are in the majority of instances, if followed by a care- 
ful inspection or test, adequate for the size of the purchasing 
problem at hand. 

105 



Iiidelinite specifications affect prices for the reason that ven- 
dors by not knowing exactly what is wanted are apt to fix a 
higher price in order to "feel safe." Some of the supplies used 
bj^ the school district are purchased in quantities large enough 
to warrant the preparation and use of more complete specifica- 
tions, and the enforcement of inspections and tests adequate to 
insure that the deliveries actualty conform with these specifica- 
tions. Such specifications have already been adopted in many 
of the larger cities and might be used to great advantage in Ilar- 
risburg. 

Brqiiisitio)is and Estimates. 

The board instead of using one standard requisition has 
adopted three very large, cumbersome and expensive forms. A 
different form is used in requisitioning each of the following 
kinds of supplies, whether these supplies be in store or are to be 
purchased : 

Text books. 

Janitors' supplies. 

Educational supplies. 

No general requisition form has been adopted for use in re- 
quisitioning miscellaneous items not properly falling under one 
of the above groups. One of the three forms would still be used 
in such cases. 

Each of these forms has lists of all of the standard articles or 
supplies adopted by the board printed thereon. The main use 
made of the forms is prior to the beginning of each fiscal .year 
when estimates of all of the supplies to be needed for the ensu- 
ing year are listed on the respective requisitions. At that time 
quantities of a large number of the articles in each list would be 
needed.. These lists or estimates are thus cumulated and pur- 
chase orders placed. However, there are many occasions during 
the year when only one item, which may or may not be included 
in the lists of standard articles, would be required. In such 
cases, one of the above-named forms would still be used either 
by confining the request to the one specific article in the list or 
by adding the unclassified item at the bottom of the form. 

106 



There is no special blank requisition form wliieli may be used 
for miscellaneous articles, repairs, unusual services, etc. 

The argument was advanced that the printed lists were de- 
cided advantages in securing sufficient and accurate description 
as to what was actually wanted, and also as limitations as to 
what might be requisitioned without special authority. There 
is nO doubt wliatever but that the lists of standard articles are 
.of great use, but there is no need why they should form a part 
of each and every requisition. Instead, one list of standard com- 
modities should be furnished each employe having authority to 
requisition, and this should serve for the entire year. 

Recpiisitions are prepared in duplicate, not by carbon process, 
but by copying the information on a stub. This is an unneces- 
sary duplication of work and should be prevented by the use of 
carbon paper. 

In the appendix to this report is described in more detail the 
form of a standard requisition which it is believed to be well 
adapted for the use of all branches of the school district. This 
form is in blank, requiring a brief description of the articles 
needed. 

If it were possibh^ to supply at the same time all or nearly all 
of the articles asked for on the requisition, it might be possible to 
extend the use of the requisition to that of a stores invoice. This 
procedure is found in some municipalities, but is gradually being 
superseded by a procedure calling for both a requisition and a 
stores invoice. This is the method which it is believed should be 
adopted by the Harrisburg school district and which is sub- 
stantially as follows: 

Requisitions should be prepared in duplicate by the teacher 
or other employee desiring the supplies, materials, services, or 
repairs. The original copy should be submitted to and approved 
by the principal of the school or head of the department or di- 
vision of the work before being sent to the secretary. If the 
request be approved by the secretary, the requisition should then 
be referred to the purchasing agent or storekeeper for action. 
Requisitions should be numbered consecutively as issued, and 
should provide a space for showing th(^ number of the resulting 
stores invoice, oi' if shipment be made direct instead of from 

107 



stores for a brief reference to the purchase order, invoice or 
other docinnent. The original copy should be attached to the 
respective stores invoice and filed in the office of the storekeeper. 

Competitive Bidding. 

When the annual estimates have been received by the sec- 
retary, they are assembled and listed on separate schedules ac- 
cording to the class of supplies. Each of these schedules, there- 
fore, shows quantities of the items listed thereon which it nas 
been estimated will be sufficient to meet the needs of the entire 
school district for the ensuing fiscal year. Copies of schedules, 
together with a circular letter requesting bids, are then sent 
to all dealers in Harrisburg and to others in various cities who 
aire known to be interested in the sale of the items listed on the 
schedule. The rules of the board also require that the proposed 
purchases be advertised in two daily papers in the city of Har- 
risburg once each week for three weeks prior to the date fixed 
for receiving bids. 

The extent to which competitive bidding is invited is well 
illustrated by the following table, showing the approximate num- 
ber of invitations which were sent out and number of bids which 
were received in connection with the so-called annual contracts 
for the last fiscal year: 

Supjily Schedule. 

Janitorial supplies 

Biological supplies, 

Electrical supplies 

Supplies for chemical laboratories, . . . 
Supplies for physics laboratories, . . . 
Supplies for copper and brass rooms, . 

Supplies for wood room, 

Supplies for mill room, 

Lumber, 

General educational supplies 

Drawing supplies, 

Fuel. 

108 



Numbei- of 
Dealers In- 
vited. 


Number of 
Bids Re- 
ceived. 


80 


22 


8 


5 


8 


5 


10 


6 


15 


9 


5 


4 


5 


4 


5 


4 


8 


6 


40 


6 


12 


10 


18 


2 



Printing 1 - -5 

Repair work (special jobs) estimated,. 

Average, 20 3 

In this wa\' comix'titive bidding has been extended as far as is 
practieablc. The board is to be complimented for its efforts to 
interest dealers in the business of the school district, not only 
by advertising the proposed purchases, but by sending proposal 
blanks to all known to deal in the commodities to be purchased. 
In the extent of inviting competitive bidding, the Ilarrisburg 
school district is far in advance of the average school district or 
municipality. 

Proposals. 

The proposal blan]< used is a mimeograi)hed form on 
which are listed in detail the estimated (juautities to b(; needed 
for the ensuing year of all eommodities of the same general na- 
ture. Each commodity is described briefly in accordance with 
the specifications already described. In som(> instances it was 
noted that separate proposal sheets had Iveti ]>repared for the 
same class of connnodities which were to be (h'li\'ered at two or 
mor" points. This seems unnecessary and inadvisable, inas- 
much as several different delivery points may conveniently be 
shown on the one proposal sheet, and more espeeialiy since llie 
increased quantities resulting fnmi such a consolidated ])r<i- 
posal should tend toward lower prices. In general however. 
the method of ]U'eparing and submitting proposals is a good one. 

Contracts. 

The boai'd si'ldom enters into fontracts in the |)U!"chase 
of supplies. The so-called contracts which are usi'd are jiothing 
more than an expression of M'illingness — usually in wi'iting — • 
o]i the part of the vendor to furnish the articles listed on the 
proposal at a stated price. Neither the boai'd nor the vemlor 
agrees definitely to purchase or to sell. Hence, not even a con- 
tingent liability results. When the lowest bidder has betMi as- 
certained, a notice to that effect is sent him. This notice i^ fol- 
lowed by a I'tui'cbase order. 

109 



Furmally executed contfriets are very advisable in many in- 
stances. I\y agreeing to accept a definite quantity at a fixed 
price, the vendor can plan accordingly. Instead of guessing 
the cjuantity to be purchased and the market conditions, the ven- 
dor can usually compute accurately and offer better prices. 

<^'ontracts are of little valu(^ if the delivery is to be imme- 
diate. In spite of the fact that the board has only very limited 
storage rooms, it has been customary to purchase nearly every- 
thing for immediate delivery. It is believed that in the making 
of formally executed contracts for the purchase of more com- 
monly used commodities, deliveries may be secured at the con- 
venience of the board and much storage expense be eliminated. 
However, the matter of entering into contracts should be left 
to a large degree to the purchasing agent, who should know the 
peculiarities of existing market conditions, storage situations, 
and other conditions having a direct bearing on the advisability 
of long term contracts. Annual contracts are largely used by 
many municipalities in making purchases of over $500 where 
the deliveries are to be made at various times throughout the 
year, and they have been found to be profitable. It is therefore 
recommended that the proposed purchasing agent be instructed 
to consider the advisability of using them in the purchase of at 
least the mor(^ important commodities. All contracts should be 
a]iproved by the board. 

FjircJiasr Orders. 

The board has adopted its oAvn purchase order, which is. 
in form, little more than a special sheet of correspondence paper. 
It is hardly adequate and should be changed so as to provide 
spaces and columns for the insertion of such information as is 
needed on every purchase order. The style of form recom- 
mended for use is described in the appendix to this report. 

Purchase orders are prepared in duplicate, the original being 
sent to the vendor and the duplicate copies being retained in 
the secretary's files. At the present time purchase orders are 
not registered, nor is any use made of the orders in posting the 
amounts of the contingent liabilities resulting therefrom to the 
resp<'cti\'e a]ipropriation accounts, even though in the majority 

110 



of eases the estimated or actual aiiioimt of the order is unknown. 
Under the proposed accounting system, hoAvever, it will be neces- 
sary for an estimated or actual amount to be shown on at least 
the duplicate copy of each order, and for these amounts to be 
both entered in a register of orders and posted to the respective 
account in the appropriation ledger. The use of a register 
of orders is described more fully in the appendix to this report. 
From this register it will be possible at all times to learn the 
total amount and details of contingent liabilities resulting from 
unfilled orders, which amount will also act as a control over the 
amount of such liabilities posted to the appropriation ledger. 

Inspection of Supplies. 

Inspection is a much more important function than most 
buying officials are willing to grant. This is truer of public 
activities than of private concerns. The best price in the world 
is of little use if the goods delivered are not as ordered. Fur- 
thermore, the word "inspection" means more than counting. 
Inspection should be made by experienced men. The inadequacy 
of the present method of inspecting repairs and certain supplies 
delivered at school buildings has already been discussed in con- 
nection Avith the payment of bills. The procedure recommended 
in connection with the proposed invoice calls for certain certifi- 
cates which, if truthfully signed, should practically assure thor- 
ough inspections. 

However, when responsibility for the ]iurchase, custody and 
issuance of supplies shall have been definitely fixed, the official 
to whom such a responsibility has been delegated should be held 
alisolutely accountable for the proper inspection of all supplies 
He in turn cannot make all inspections himself, so naturally 
must delegate some inspection responsibility to other employees. 
There is no use of establishing standards, of preparing specifica- 
tions, or of naming definite quantities unless every reasonable 
effort be made to see that the quantities and qualities shown on 
the invoices are correct, not only with the official orders or speci- 
fications, but as to actual delivery. The need for inspection of 
deliveries is brought out in the case of recent deliveries of coal 
at the Teclinicnl TTigli School. Inspection of the bins nt this 

11.1 



plant showed that a large amount of coal, apparently No. 1 
buckwheat mixed with very fine coal- — either river or screenings 
— ^had been delivered. Examination of the bills showed that 
the board had been billed for pea coal at the contract price for 
pea coal. 

The inspection of supplies should be one of the most import- 
ant functions of an auditing division, but where the business of 
the district or municipality is not large enough to warrant it, 
the estaljlishment of such a separate organization is not always 
possible. In lieu of an independent inspection by an auditor, 
this function should be delegated to the purchasing agent and 
his subordinates, whose transactions may be supervisfvl hy the 
secretary through an occasional test and "checking up." 

Purchase of Coal. 

Purchase of coal presents a problem of enough import- 
ance to warrant special consideration. The coal bills of the 
school board for the past three years have averaged $18,300. 
representing annual purchase of about 3,000 gross tons at an 
average cost of $4.43. 

It is well known that the quality of coal of different kinds 
varies greatly. Large consumers have therefore found it neces- 
sary to devise special methods of securing coals of desired qual- 
ity. Two methods of purchase have come into wide us(^ in re- 
cent times — 

1 — Purchase by specifications in which standards for heat con- 
tent, percentage of ash, and miscellaneous physical and 
chemical properties are defined, and compensation based 
upon the extent to which these standards are ap- 
proached in the coal delivered. 

2 — Purchase direct from the mines, experience having shown 
that certain coals from known localities best suit the 
conditions of operation. 

The former inc^thod is especially useful in the case of anthra- 
cite coals whose "steaming" properties are easy to define in 
terms of certain properties determinable by laboratory tests. 
This method is connnonly used by public agencies, which are 

112 



usually required to make their purchases under open coiupeti- 
tion. 

The latter method is now used largely by private concerns, 
especially by consumers of bituminous coals. In a number of 
cases it has replaced the so-called "B. T. U. method" which 
came into popular use some years ago. 

It is believed that the coal i)urchase problem of the Harris- 
burg school board can be solved best by a judicious combina- 
tion of certain features of both systems without the extremes of 
either. Purchase of coal by specifications is cumbersome and 
expensive and (^ronomically justified therefore only wliere very 
large ;imonnts of coal are purchased and where the cost of the 
machinery necessary to sample and test the coal can be reduced 
to a very small percentage of the purchase amounts. Inquiry 
was made into certain of the conditions in the Harrisburg coal 
market and into facilities for having tests made by established 
laboratories. It is not believed that the school board would be 
warranted in making its coal purchases on "specifications," as 
that term is connnonly used. It is believed, however, that a cer- 
tain minimum (juality of coal can be assured in a simple man- 
ner. 

It has been found by experiment that the heating value of 
anthracite coals can usually be determined roughly if the per- 
centage of ash is known. Thus. flOO per cent. — per cent, of 
ash) X ^A9 =: the ?>. T. V. per pound of coal within a few per 
cent. The determination of ash in a sample is a relatively sim- 
ple matter and can ])e done by a private laboratory at a rela- 
tively' small cost. 

It is therefore suggested that the board insert a clause in its 
fuel proposal giving it the right to reject, at the expense of the 
contractor, or to accept with certain reductions in price any 
coal in which the percentage of ash, as determined by laboratory 
test (on the dry basis), exceeds the following limits: 

Kind of Coal. :\raximum Per Cent. Ash. 

Broken 11 

Egg *. 14 

Stove 15 

Pea, 18 

Buckwheat No. 1 , 2 or 3 21 

113 
C of C— 8 



If tile board should decide to aecept coal of poorer quality 
than that indicated in the above table, it is suggested that pre- 
vious stipulation be made for a reduction in price of 2 per cent, 
tor each per cent, of ash in excess of the limiting value. 

These measures may not l)e effective during present market 
conditions, but when nornuil times have been restored they 
should be quite effective. 

It is recommended in another chapter of this report that the 
board employ a competent superintendent of buildings. It is 
believed tluit such an officer should be able, through careful su- 
pervision of the unloading of the coal ears and by means of oc- 
casional sieving and ash tests, to help the board greatly in the 
solution of its fuel problem without much additional expenditure 
for sampling and testing. If in the judgment of the building 
superintendent inferior coal is contained in a car load about to 
be delivered, samples can be taken and a rough test of the qual- 
ity made before deliveries have proceeded to a great extent. 

rrice Records. 

At the present time no adequate price records are kept. 
The accepted quotation sheets are preserved in the secretary's 
office, but as these are numerous and are filed away according to 
years and com.modities they cannot be made to serve as con- 
venient records eithei- of prices or bidders. 

In all well regulated purchasing departments it is customary 
to have constantly available for reference purposes a convenient 
card record of each commodity, showing general information re- 
garding date of purchase, quantity purchased, name of vendor, 
price and other pertinent information concerning market and de- 
livery conditions, etc. Such a record is very valuable and should 
be maintained by the man designated as purchasing agent. This 
record might also be made to serve as a convenient record of 
responsibile bidders. 

Claima Ills' Ledger. • 

In many city departments, and particularly in purchas- 
iiie,' offices, it has been found very convenicnit to maintain a so- 
called I'laimants' ledger. Such a ledger, which is merely a 

114 



chroiiologi'-al I't'corcl of the li-ansaetious \vitli each vendor, has 
little or no real aecounting value, but is frequently of great 
value for general refei-ence purposes. 

No record of this nature is kept at the present time. How- 
ever, froni observations made during the survey, it is believed 
that the advantages to be gained by such a ledger would war- 
rant the small amount of work necessary for its maintenance. 

Stores 

(ii iH ral I)< scriptidii of iJic Stores Situation. 

The secr(4ar\' has delegated the functions of receis'ing, 
stoj'iijg and issuing supplies to the same clerk who is acting as 
purchasing agent. In this work the clerk has the part-time 
assistance of one laborer. The stores which are under the direct 
supervision of this clerk are of a varied natui'e. covering prac- 
tically all of the standard articles used by the district. The 
amount carried on hand varies greatly according to the season 
of the year. I'his stock, which is scattered in various rooms 
in at least two buildings, is designated as the "general stores" 
and is the stock from which the small miscellaneous requisitions 
received during the year are filled, so far as the stock on hand 
permits. 

Stocks of the ordinary educational supplies are also carried 
at nearly all of the school buildings. These supplies are under 
the custody of the principals. Within each school building other 
substores of special supplies nmy be kept by the teachers of 
various courses of instruction, such as drawing, music, etc. In 
the two high schools there are several small stocks of special sup- 
plies under the custody of as many special instructors. Over 
these several storerooms and closets there is no centralized con- 
trol. When once the supplies have been sent to the different 
storage points — usually in quantities sufficient to last for a year 
— they are recorded as expenditures and are in no way con- 
trolled by the i*ecords in the secretary's office. Each employee 
having to do with the receipt, custody and issuance of supplies 
has adopted his own individual methods, there being absoluteely 
no uniformity as to forms, records or pj'ocedures. Neither is 

115 



the value of these supplies known or considered in any way as 
an asset. 

Gnicral Ptoccdun' in Jsskhkj Sfo)-(s. 

Requisitions are used only for requesting text books, edu- 
cational supplies and janitors' supplies and only when the sup- 
plies are to be issued from the general stores. No special re- 
quisition form is required for all other supplies or services, the 
requests being expressed on a special ''janitors' supply" form or 
by telephone, by verbal communication or by means of special 
memoranda. The requisitions for text hooks and the educational 
supplies must be signed by the principal and be approved by 
the supervisor before they will be considered by the secretary. 
No special approval is needed for other requisitions. 

When requisitions are received at the secretary's office, they 
are turned over to the purchasing clerk. If the supplies re- 
quested are in stock, deliveries are made at once. Deliveries 
of text books and educational supplies are covered by a special 
form called "receipt to the secretary." This form, which acts in 
the nature of a stores invoice, is prepared in the office of the 
secretary. It is made in triplicate, not by carbon process, but 
by copying the data on three identical forms connected by per- 
forations. Two of these copies accompany the deliveiy. One 
signed copy is returned to the secretary, where it is used solely 
for posting to the supply ledgers or sheets kept with each school. 
On each of these forms is printed the entire standard list of 
books and supplies. The use of these forms, which are unneces- 
sarily expensive, requires an unwarranted amount of dupli- 
cated work. They should be discontinued and superseded by a 
small simple stores invoice form which would cover the issu- 
ance of all kinds of supplies. Such a form is described in the 
appendix. 

In the issuance or purchase of text books and educational sup- 
plies, still another expensive form and much unnecessary dupli- 
cation of work might easily be eliminated. The form referred 
to, which is almost an exact copy of the regular requisition for 
these classes of supplies, is used solely by teachers in informing 
the principles of their needs. This form is prepared in fhipli- 

116 



eate — liki'wise by stub — one copy of which is sent to the i)riu- 
cipal, who accumulates the quantities shown on the several 
teachers' requisitions and prepares one consolidated requisition 
sent to the secretary. The extent to which this duplication of 
work is carried is well illustrated as follows: If a teacher 
should need rulers, the request would he expressed on two cop- 
ies of a form, one copj^ of which would be sent to the principal 
of the building. The principal in turn would copy this request 
twice on another form, one copy of which would be sent to the 
secretary. When delivery is made, the secretary must bill or 
invoice these rulers on three copies of another form, each copy 
of which is prepared separatel,t. In the preparation of these 
nine copies, no use is made of the carbon process. 

Although the greater portion of educational supplies and text 
books needed by each school is covered by the one genera! re- 
quisition received prior to the beginning of the school year, 
still shortages and changes in local conditions frequently neces- 
sitate many other supplementary requisitions, which at the pres- 
ent time are sent to the secretary at various times throughout 
a year or month. This lack of a definite date on which action 
may he taken on a large number of similar transactions greatly 
increases the work of the secretary and his assistants. A defi- 
nite date should be fixed in each month on which all reqviisi- 
tions for the ordinary supplies should be submitted. This 
should appl.y equally to .janitorial supplies and all of the educa- 
tional supplies and text books, the need for which is not an ac- 
tual emergency. In case of real emergencies, requisitions should 
be permissible at any time. Care should be taken to see that the 
emergency clause, which is frequently used as a guise to cover 
inexcusable and unnecessary requisitions, is not abused. By 
thus establishing such a definite date each month, it should be 
possible to arrange for a fixed delivery route. 

Stores Invoice. 

Asid(> from the cumbersome and expensive form called 
"receipt to the secretary" already described and the discontin- 
uance of which is recommended, the board has no standard 
stores invoice from such as would be necosary if stores are to be 
controlled and proper expense accounts maintained. The sug- 

117 



gested form of stores invoice, together with its procedure, are 
discussed iu the appendix. 

Stores Control. 

By stores control is meant the location of responsibility 
for stores on hand and a current distribution of the value 
of the stores issued. Issues either convert stores into expenses 
or indicate transfers of responsibility. A record of both of the 
transactions is necessary. 

The absence of real central responsibility for the custody of 
stores, the failure to support many issues by an adequate receipt, 
the almost entire lack of stores records, etc., all contribute to the 
present lack of stores control. This condition has not been par- 
ticularly evident in the past owing to the fact that the board 
has not been in receipt currently of adecpiate financial informa- 
tion. However, it should be remembered that without such an 
accounting control of stores it never will be possible for the 
board to know either the amount of its assets and liabilities or 
the true monthly operating costs of the various branches of its 
educational activities. 

At present all purchases are considered solely as expendi- 
tures, the total amount of which is the only guide or indication 
of the operating expenses. Hence, if monthly statements were 
prepared, the amount of the monthly expenditures would have 
to be considered also as the monthly expenses. The bulk of the 
purchases are made during two or three months of the year. 
IMonthly statements prepared under the present system therefore 
would show expenses for these two or three months entirely out 
of proportion with the balance of the year. They would be in- 
correct and valueless for comparative or administrative pur- 
poses. The need for correcting this system is obvious. 

Still another bad feature of the present lack of control is the 
possibility of actual loss. This possibility exists because em- 
ployees, pupils or others may withdraw various articles either 
from the general stores or from the substores in the school 
buildings without first having received special authority to sup- 
port such action. As no stores records are kept, it would be 
practically impossible to locate the responsibility for any un- 
usual losses or discrepancies which might develop. 

118 



The establishment of an adeciuate stores control is not as 
difficult as might be imagined. The first step is necessarily a 
detailed inventory, the total value of which should be recorded 
in a controlling account in the general ledger called "stores." 
If desired — because of substores maintained at the various school 
buildings — subsidiary controlling accounts may be set up. These 
accounts should l)e debited each month with the total value of 
items received into the stores. The amount of new purchases 
could be ascertained from a special "stores" colunni in the reg- 
ister of accounts payable. Returns to stores or transfers from 
one point to another should be covered by special documents, 
these transactions being journalized at the end of each month. 
The credits to the controlling stores account should be secured 
from the monthly totals of the register of stores invoici's and 
from the transfer documents. Separate registers should be pro- 
vided for each storehouse, but in the case of the small sub- 
stores maintained at the schools these registers need not be more 
than a simple record of the issues. The balance of any controll- 
ing stores account should therefore represent at all times the ac- 
tual value of the stores on hand. The form of both the stores in- 
voice and register is described in the appendix to this report. 

Stores Records. 

.Vside from a special record of supplies of a certain kind 
maintained by the principal, records to show the quantity and 
nature of stores are almost entirely lacking. Only by making 
physical inventories could the amount of stores be ascertained. 
If anything verging on a real stores control is to be maintained, 
it will be necessary for certain controlling and detailed records 
to be kept. The controlling records should be the account in the 
general ledger called "stores" and any subsidiary accounts 
which would be maintained for the substores, such as those at the 
two high schools. AVherevcr a stores problem is presented, de- 
tailed stock ledgers should be maintained, a separate card or 
sheet being prepared for each commodity cai-ried in stock. These 
ledger accounts should l)e opened with the inventory, and should 
be currently debited with all i-eceipts. The credit postings 
would be nuide from tlie stores invoices. 

119 



Need for Better Storage Faciliiies. 

One of the pi:incipal reasons for the present unsatisfac- 
tory stores situation is the lack of an adequate general store- 
house. The four supply rooms which are now used are entirely 
unsatisfactory. They are too small, not adapted for the liand- 
ling and storing of supplies and too scattered. 

Careful consideration has been given to several possibilities 
for improving the present situation. The one which is believed 
to be the best solution of the storehouse problem also provides 
for the great need of more space for the administrative office. 

The following elements are embodied in this plan : 

1 — The removal of the two model classes which now occupj^ 
the class-rooms on the first floor of the rear Stevens 
Building. 

For the present these may be moved upstairs; ulti- 
mately provision for model schools could be made in 
connection with the new building program. 

2 — The conversion of the entire first floor of the rear Stevens 
Building into a storeroom. 

3 — The removal of two and possibly all of the classes on the 
second floor to neighboring buildings where room is 
known to exist. 

4 — The removal of the Teachers' Training School to another 
building as soon as room can be provided by the new 
building program. 

5 — The removal of the office of the superintendent of schools 
to the room now used by the Training School. 

This schemi^ M^ould provide fairly good storago facilities close 
to the central office and at a minimum cost. It Avould also pro- 
vide the room in the administrative office which will be neces- 
sary to accommodate the additions to the staff recommended in 
this report. 

The remodelling of the storeroom could be done during the 
coming summer. The removal of the Training School to an- 
other building could probably not be effected before the com- 
pletion of one of the proposed new buildings. 

120 



IV 
FINANCES AND ACCOUNTS 

Organization 

Prese nt Orgawizatio h . 

The following excerpts from the school law show in a 
general way the foundation upon which the accounting system 
of the Harrisburg school district has been developed: 

Section 314 ". . . .He (the secretary) shall keep a correct 
and proper record of all the proceedings of the board, and 
shall prepare such reports and keep such accounts as are 
required by the provisions of this act . . . . '' 

Section 317. ". . . . He (the secretary) shall furnish, when- 
ever requested, any and all reports concerning the school 
affairs of the district, on such forms and in such manner 
as the state board of education or the superintendent of 
jiublic instruction may require." 

Section 319. "He (the secretary) shall be the custodian of 

all the records, papers, office property of the 

school district . . . . " 

Sect-ion 320. "He (the secretary) shall keep correct accounts 
with each receiver of taxes, school treasurer, or school tax 
collector of the district, reporting a statement of the fi- 
nances of the district at each regular meeting of the board, 
which statement shall be entered in full upon the minutes." 

Section 323. "He (the secretary) shall perform such other 
duties pertaining to the business of the district as are re- 
quired by this act or as the board of school direetors may 
direct." 

Section 32 L "The treasurer of each school district shall re- 
ceiv<' all state appropriations, district school tax and other 
fnnds belonging to the school disti-id. and jiay out the same 

121 



on proper orders approved by the board of sehool direc- 
tors, signed by the president " 

/Section 325. "The treasurer shall .... at the end of each 

month make a report to the secretary of the board 

of school directors of the amount of funds received and 
dispersed by him during the month." 

Section 328. "The school treasurer shall perform such other 
acts and duties pertaining to the district as the board of 
school directors may direct, or as may be required by him 
by law " 

It is very evident from the above provisions that the law in- 
tends the secretary to be the accounting officer of the school 
district. It is likt^wise clear that the collection, custody and 
disbursement of funds are vested in the school treasurer. 

The board of directors, acting in accordance with a right ex- 
pressed in section 404 of the school law, has also delegated to 
the secretary many other duties pertinent to the management 
of school affairs. This section of the law is as follows : 

"The board of school directors in every school district 
in this Commonwealth may adopt and enforce such reason- 
able rules and regulations as it may deem necessary and 
proper, regarding the management of its school affairs and 
the conduct and deportment of all superintendents, teach- 
ers and other appointees or employees during the Tune 
- they are engaged in their duties in the district " 

In delegating duties under the provisions of this rule, the 
board seems to have arbitrarily assigned most of them to the 
secretary, apparently without first having studied the individual 
problems, with the view of ascertaining the amount of work 
involved, or the proper allocation. Hence, the secretary now 
acts as purchasing agent, storekeeper and paymaster, compiles 
miscellaneous educational statistics, arranges for the printing 
and sale of bonds, keeps the bond and other financial records, 
directs the treasurer in investment matters, exercises a certain 
amount of supervision over the repair work, and performs 

122 



many other duties, besides dieting as thi' aeeomiting offieei' itf the 
board. In the performance of this work the secretary has the 
assistance of one full-time clerk, and the part-time assistance of 
one stenographer and one clerk. Each one of these employees 
has more or less to do with the ])oard's accounts. 

The school treasurer, who is also the collector of school taxes 
and city treasurer, maintains a separate organization, employ- 
ing several clerks. The treasurer is paid two salaries for his 
two ex officio positions, and is allowed to select and pay his 
own employees. Aside from the collection of school taxes, only 
a small portion of the time of one clerk is spent on educational 
work. 

The accounting system which has been developed under the 
present organization is lacking in so many of the essentials of 
modern accounting that it can scarcely be called a "system." 
This situation can hardly be attributed to the secretary's office, 
which is no larger than when the Harrisburg school district was 
only one-half of its present size. Even if the employees of this 
office were practical accountants and clothed with the authority 
necessary to prescribe and enforce modern aeeomiting proce- 
dures, they would not — under the present organization — l)e able 
to carry out the principles of such a system unless a correspond- 
ing decrease of other duties was arranged, or a more equitable 
allocation of functions brought about. Neither can the treas- 
urer be blamed for the present situation. He is merely follow- 
ing the procedure adopted by his predecessors. The fault lies 
with the board for its failure to demand complete^ financial in- 
formation, which could be obtained only by means of a com- 
plete accounting system, and for not arranging for an organi- 
zation capable of maintaining such a system. 

In subsequent paragraphs, it will be shown that a1 pi-es(M)t 
many of the most important records to be found in modern 
bookkeeping — from a general ledger to detailed expense ledg- 
ers — are missing. Tt M'ill also be shown that in lacking many 
principles of modern accounting, the present system fails to 
provide currently much of the information and many of the 
controls which are absolutely essential to the efficient adminis- 
tration of the school district. 

123 



I'rojios( (I Jieorganization. 

It is believed that one of the greatest needs of the schoo] 
district is an entirely new system of accounts, the principles of 
which are outlined in the appendix to this report. It is like- 
wise believed that such a system should be in charge of a prac- 
tical accountant, one who fully understands the principles of 
doul)]e entry, fund and proprietary accounting. The creation 
of such a position is therefore recommended. This accountant, 
who should be subordinate to the secretary, should be granted 
full authority to prescribe and enforce the use of forms and 
procedures necessary for the success of the system, and in turn 
should be held responsible for the preparation of periodical bal- 
ance sheets and other financial statements, and for the main- 
tenance of all records necessary to produce this information. 
While the accountant should be unhampered by work not di- 
rectly allied to accounting, it is believed that if a new system 
is installed, he would have time materially to assist on other 
general clerical work which might be assigned to him by the sec- 
retary. 

It is also believed that by making the following changes in con- 
nection with the office of treasurer, the creation of the position 
of accountant need not necessarily mean an additional expense 
to the school district. 

The school treasurer is paid an annual salary of .+'1,300. As 
has ali'oady been stated the work actually performed in connec- 
tion with this office consumes only a small portion of the time 
of one clerk. While some of this work would be eliminated by 
the proposed new system, other duties requiring even more time 
would be delegated to the tr(>asurer. The consolidation of all of 
the Avork directly connected with receipt, custody and collection 
of cash (other than the collection of the taxes which should re- 
main with the collector of city taxes) should require only a rela- 
tively small portion of the time of one clerk. In some munici- 
palities it has been found economical and equally satisfactory 
to have a local bank act as treasurer. In these cities banks have 
been willing to act in this capacity without additional compen- 
sation. It is possible that such an arrangement might be made 
in TTari'isburg. If so. the salary now paid to the school treasurer 

124 



would be available to apply toward the proposed position of ac- 
countant. But whether or not the board is able to secure a bank 
to act as treasurer, the position of accountant should be created. 
The organization which would result from the application of 
the above recommendations would be practically^ as follows : 

' Secretary's office- 
Secretary. 
Accountant. 

Purchasing agent or storekeeper. 
Stenographer (part time). 
Board "^ Tax collector's office — 

Collector of school taxes. 
Clerks. 
Treasurer's office — 

Bank as treasurer f without compensation). 



Present and Proposed Accounting Systems 

Description of General Boohs of Account. 

The general books of ac(mnt of the district are practi- 
cally limited to an appropriation ledger maintained by the secre- 
tary, another appropriation ledger and journal maintained by 
the treasurer, and a bond ledger Icept by the secretary. 

The two appropriation ledgers are practically identical. They 
carry the same appropriation accounts, to which postings are 
made from the same documents, namely, the approved budget 
and schedules of Avarrants. The treasurer's ledger is used in 
preparing the monthly statement of appropriation, the secre- 
tary's being used solely in verifying the treasurer's report. 
There is absolutely no need of this duplication of work. The 
treasurer's records should be confined to those having to do with 
the collection, custody, and disbursement of cash. Appropria- 
tion ledgers are not necessarily cash records; it is recommended 
therefore that the treasurer's appropriation ledger be discon- 
tinued. 

The journal maintained by the treasurer is in the nature of a 
dny bonk, in which finfineitil transactions, regardless of the funds 

125 



affected or the nature of the transaction, are recorded chrono- 
logicall.y. It is an inadequate record. 

The bond ledger is large and cumbersome and should be su- 
perseded by a more convenient record to be kept by the treasurer. 

While it is possible by completing certain entries, by accumu- 
lating the data shown on various scattered documents, or by 
making special inquiries, to furnish other financial data, still the 
general records fail to show currently and compactly any infor- 
mation other than the expenditures and unexpended balances of 
appropriations and amounts of cash on hand. The accounts by 
which the cash balances are ascertained are so incomplete and so 
foreign to approved methods, that they would scarcely be under- 
stood by one unfamiliar with the system. Hence, it may be 
stated that the permanent records of the district are practically 
limited to approi^riation accounts. Such accounts are necessary 
and should be kept in detail, but it is a physical impossibility for 
one duplicated set of appropriation ledgers to serve as an ac- 
counting system which Mill furnish the necessary information to 
assist the board or its executives in properly directing the activ- 
ities of any department or division. 

Thc^se general books are maintained in the single entry system, 
a system seldom found in progressive municipalities. Contrary 
to the old belief, a single entry system is much more confusing 
and difficult to understand and more cumbersome and laborious 
in the end than the approved double entry method. It would be 
very uncommon to find a progressive, successful, commercial en- 
terprise, even one much smaller in scope of work than the liar- 
risburg school district, which Avas still clinging to single entry 
bookkeeping methods. 

Fioids. 

The few accounting records which are kept do not make 
adequate distinction between the different funds at the disposal 
of the school district, namely. 

General operation fund. 
Construction funds. 
Sinking funds. 
Teachers ' retirement fund. 
126 



The tinaneial statenu'iits reudered to the board, based on the 
existing records, are very confusing, the transaction of the gen- 
eral, construction and sinking funds being included in the same 
statement and report. For example, the treasurer's report for 
the month of January includes in one statement expenditures 
chargeable to operating, construction and sinking funds. Again, 
the "statement of assets and liabilities" prepared by the audi- 
tors and included in the annual report for 1916, makes no fund 
distinction. It I)ecomes difticult, therefore, to arrive at a clear 
understanding of the condition of the various funds. 

Investigation of the treasurer's records and procedure fol- 
lowed in connection therewith shows that all of the cash belong- 
ing to the general operating fund and that raised from the sale 
of bonds for specific construction purposes is included in the 
one general bank account. In the same accoiuit are also in- 
cluded certain sinking fund moneys which are being held for 
the redem])tion of bonds which are due and payable. The cash 
account, being composed of so many diffei'ent funds is very mis- 
leading. 

The proposed system provides that separate accounts, docu- 
ments and statements be maintained and prepared for each fund. 
The advisability of such a method is evident when It is recalled 
that each fund has been raised for a separate and distinct pur- 
pose and expenditures chargeable to it should be limited and 
accounted for accordingly. There is no reason why these trans- 
actions should be consolidated, and ever^"- reason why they should 
br maintained separately. 

The present fund accounts fail to take into consideration the 
contingent liability which always results from the issuance of a 
purchase order. Whenever separate appropriation aecounts are 
established by the budget or by the sale of bonds, it is es.',eiitial 
that an accurate record Iw kept of all encumbrances against each 
authorization to spend. Accounts whieh i-etlect unexpended bal- 
ances are useful as guides to limit payments while accounts which 
reflect un(mcumbered balances are useful as guides to limit the 
incurrence of liabilities and hence are even more important. 
The proposed system calls for the posting of the amounts of all 
purchase orders as well as approved invoices, to the appropria- 

127 



lion and fund accounts chargeable, thereby enabling both the 
unexpended and imencumbered balances of all accounts to be a 
matter of current information. 

Revenue and Expense Basis versus Receipts and Payments. 

The accounts of the board are now on a receipt and pay- 
ment basis. For example, the purchase of a large number of text 
books to be used during a period of years would be included in 
the operating cost of the department for the year or month in 
which they were purchased. Similarly, any monthly cost state- 
ments prepared under the present system, must include in the 
operating costs of the month large amounts for more or less 
permanent property. The same procedure would be followed in 
the purchase of the year's supply of various kinds of supplies 
kept in the storeroom, in the acquisition of furniture, and of 
various other kinds of equipment. 

Nearly every successful business man insists upon monthly 
statements, showing, in comparative form, the costs of actully 
operating each branch of his business. Operating costs, in order 
to be of any value, must be confined to expenses and must include 
all expenses, but the.v must exclude any and all permanent prop- 
erty and equipment and also supplies or material purchased in 
quantities to be carried in store until used. Similarly revenues 
should be recorded as of the time they accrue and become re- 
ceivable instead of only at the time they are received. Thus 
operating statements should set forth the amount of revenues ac- 
crued and expenses incurred instead of merely receipts and 
payments. 

Expe nse Re co i xls. 

The board is practically without true expense ledgers 
from which the cost of its various activities could be ascertained. 
Each annual report contains statements of expenditures, but the 
titles under which they are reported correspond exactly with the 
budget appropriations, so that they show no more than the 
amount of expenditures chargeable to the various appropriations. 
An analysis made of the expenditures so reported shows that even 
these statements are misleading and inadequate for administra- 

128 



tive purposes. Instead of currently furnishing information as to 
the nature and amounts of expenses incurred, the statenienis are 
available only at the end of the fiscal year when it is too late to 
prevent al)uses or unnecessary (^xpense, and even then they 
would be practically unintelligible unless supplemented by much 
detailed information as to what items were included under the 
different headings. Aside from special information with respect 
to fuel or partial repairs, these records also fail to show the costs 
of the different schools. Under the present system, it would be 
absolutely impossible to secure even approximate school costs 
without making detailed analysis of bills and payrolls. This is 
not done. 

Even the statements purporting to show the costs of repairs, 
and actually headed "report on building repairs" are merely 
distributions of the expenditures chargeable to the appropriation 
account "buildings and furniture," which include many items 
absolutely foreign to repairs, such as gas, insurance, furniture, 
telephone^ etc. The actual cost of repairs is therefore not 
known. Neither can the records show, except upon an analysis 
of the paid bills, the total costs of important items of expense, 
such as insurance or fuel, or even personal service. In fact, it 
would be difficult to find a system of accounts which so com- 
pletely fails to provide expense information. 

The need of expense ledgers is strongly emphasized in the 
preparation and submission of the annual reports required by 
the state and federal educational authorities. These reports 
must show the expense of the district, segregated according to 
specific accounts. In the preparation of the statements the sec- 
retary has no cumulation records u])on which to work. Instead, 
he must make a detailed analysis of all bills which have been 
paid. This is done at the end of the year by means of large 
sheets on which the amount of each paid bill is distributed ac- 
cording to the titles called for in the reports. Such work nat- 
urally requires a large amount of time. If the information so 
secured is of value to the state and federal authorities it should 
be infinitely more valuable to the local board. es]>ecially if it 
Avere available currently. 

129 
C of C— 9 



An expense ledger which it is believed should be adopted by 
the board is briefly described in the appendix to this report. If 
the procedure outlined in connection with this ledger is care- 
fully observed, it will be possible to secure, not merely at the 
end of the year, but within a few days after the end of each 
calendar month, the operating cost of each organization unit. 
Moreover, it will be possible for each school or other organization 
unit costs to be further segregated according to whatever ex- 
pense items the board may desire, such as repairs, printing, per- 
sonal services, supplies, fuel. etc. Any expense classification 
w^liich is established should conform, so far as may be consist- 
ent, with the state and federal classification, and should be ad- 
hered to from year to year in order to be of the greatest value 
for comparative purposes. The maintenance of such expense re- 
cords would naturally require some additional clerical work, but 
the results obtained would certainly justify it. 

Assets and Liabilities. 

One of the aims of every well regulated accounting system 
is to maintain records which will show at all times, and accord- 
ing to funds, what is owned and what is owed, this information 
to be summarized in a general badger. As has already been stated, 
no such ledger is provided for in the present system. Only by 
analyzing or segregating the information scattered in various 
places and shown on miscellaneous records and documents would 
it be possible to ascertain the assets and liabilities of the school 
district. The following sample balance sheet is presented for 
the purpose of showing specifically the kind of information 
which the present records fail to show, but which under the pro- 
posed system would be available whenever desired. 

Following the balance sheet the character of the various items 
therein are discussed. 



130 



Balance Sheet 



Ciiirent Assets. 

Cash 
In bank. 
In hand. 

Amounts due the school dis- 
trict. 

Revenues receivable. 
Accounts receivable. 

Stores. 

Advances. 



Capital Assets. 

Cash in reserve in general 
treasur>\ 

Work in progress. 



Lands. 

Structures and 
provements. 

Equipment. 



other im- 



Ciirrent Liabilities and Re- 
serves. 

Immediate demands for cash. 

Accounts payable. 

Bank- overdrafts. 

Interest on funded debt 
due and payable. 
Cash reserves. 

Capital funds. 

Sinking funds. 

Special and trust funds. 
Loans to be repaid from cur- 
rent revenues. 
Reserves against assets other 

than cash. 

For uncollectible taxes. 

For rebate on taxes. 

For interest on funded debt 
accrued not due. 

For unaccrued taxes. 
Current surplus. 

Capital Liabilities and Beserves. 

Loans to be repaid from sale 

of bonds. 
Bonded debt. 

Bonds issued. 
Less bonds unsold. 

Bonds outstanding. 

Less sinking fund reserves. 
Net bonded indebtedness. 
Due to other accounts. 
Reserves. 

For depreciation of capital 
ass(4s. 
Capital surplus. 



131 



Sinking Fund Assets. Sinking Fund Liabilities and Be- 

Cash in reserve in general *'c/ie. 

treasury. Due to other accounts. 

Amounts due the school dis- 
trict. Reserves to retire bonds when 
Investments. due. 

Special and Trust Fund Assets. Special and Trust Fund Liahili- 

Cash in reserve in general 

treasury. Due to other accounts. 

Amounts due the school dis- Reserves for special and trust 

triet. funds. 

Cash: 

One of the most serious defects in the accounting system 
is its failure to control or even fully to reflect the cash transac- 
tions of the district. Without a certain amount of analysis it is 
impossible to ascertain from the books of account the following 
information. 

Amount of cash on deposit with each bank. 
Amount of cash in each sinking fund. 
Amount of cash undoposited. 
Amount of cash receipts. 
Amount of cash disbursements. 

The failure to establish ledger accounts with each bank, fund, 
or official charged with the handling of cash, makes it necessary 
—in order to obtain facts regarding cash — 1)oth to scan through 
various records and to segregate the entries recorded therein. 
The secretary cannot tell how much cash should be in the hands 
of the treasurer unless the treasurer himself furnishes certain 
information. The treasurer, in turn, in order to ascertain the 
amount of cash on deposit with any one bank, must refer to the 
bank pass book or else analyze and cumulate entries shown in 
the journal. Both the secretary and treasurer, in order to know 
the amount of the disbursements for any month, must total the 
several schedules of warrants which have been prepared for pay- 

132 



meut. ^lany .similar evidences are to be found of lack of ready 
information concerning cash. 

One of the first steps to be taken by the board in perfecting" 
its accounting system should be the establishment of cash con- 
trolling accounts. These could be established by first ascertain- 
ing just how much cash is actually held by the board and then 
setting up these amounts, by funds, in the general ledger. These 
accounts should be debited with receipts and credited with dis- 
bursements, both transactions being controlled through independ- 
ent reports and procedures. The balance of each cash account 
A\()uld therefore show the amount which should actually be on. 
hand or in bank and would serve as a check over all employees 
charged with the custodj^ of cash. 

AnKniUts Due the School District: 

The amounts due the school district consist principally of 
taxes receivable. There are, however, a few small miscellaneous 
accounts receivable, such as result from impaid tuition, miscel- 
laneous sales, etc. However small these amounts may be. they are 
assets and should be both a matter of record and of control. 
The methods to be used in accounting for these amounts are 
fully discussed under the heading "r(nTnnes and revenu*^ ac- 
counting. 

Stores: 

In another section of this report the lack of stores control 
is discussed at length. This defect is of great importance from 
an accounting standpoint, inasmuch as no com])lete financial re- 
cords may be maintained or comprehensive statements prepared 
until a current record is maintained of stores received, issued 
and carried in stock. The "stores" account in the general led- 
ger sliould be debited, first, with the present value of stores on 
hand as ascertained from a physical inventory, and, second, with 
purchases of all equipment and supplies to be carried in stores. 
The credits to the account would be the monthly value of stores 
issued, as shown in the register of stores invoices. The balance 
of the account would therefore show, at all times, the value of 
assets whi.'h are in the nature of stores. 

1 9«> 



Adva]ices: 

By an "advance'' is meant cash which may be loaned oi* 
advanced to employees, vendors or to other funds. It always 
represents an asset of one fund and may appear as a liability of 
the other fund to which the advance was made. 

Work in Progress: 

At certain times the board may have assets in the nature 
of buildings, equipment, etc., which are in process of construc- 
tion. In their incomplete state they cannot always be conven- 
iently classified as structures, equipment, etc. ; hence a general 
ledger account should be provided, to which may be currently 
charged expenditures for uncompleted work which, however, in- 
creases the permanent assets. Until such time as the improve- 
ment shall have been completed and the account cleared by a 
transfer to the permanent property account, work in progress 
would represent an unclassified asset. 

Lands: Striictiires and Other Improvements: 

It was roughly estimated that the value of lands and 
school buildings owned by the Harrisburg School District is 
$1,550,000. There is nothing, however, in any of the present 
records to support this estimate, it being stated that no real ap- 
praisals had ever been taken, in spite of the fact that such valua- 
tions must be shown in the annual reports furnished to the 
state and federal educational authorities. Few business houses 
or corporations would admit that such statistics were not avail- 
able. In fact, it is very improbable that they would be success- 
fully operated if their permanent assets were not a matter of 
record. It is therefore recommended that the board authorize a 
complete appraisal of all its lands and buildings. When made, 
such values should be classified and recorded in the general led- 
ger under accounts called "lands" and "structures and other 
improvements," respectively. The details thereof should be re- 
corded in subsidiary property ledgers. Subsequent debits would 
consist of new acquisitions and the credits Avould l)e for losses, 
condemnations, sales, transfers, depreciation, etc. 

134 



Equipment : 

Under the heading ''equipment" should be included fur- 
niture, books, apparatus and all similar property which form an 
important asset of the board. According to the annual report of 
1916, the estimated amount of such assets was $135,000.00. As 
in the case of lands and buildings, this sum is only a guess, no 
inventory or valuation having been made. Control over this 
equipment, which is scattered throughout several school build- 
ings and offices and used by thousands of pupils, teachers, jani- 
tors and others, is almost entirely lacking. Losses and destruc- 
tion may or may not be unavoidable; transfers from one point 
to another may or may not be authorized ; much equipment 
claimed to be unfit for further service may or may not be worth- 
less, yet neither the board, the secretary nor any other emplo.yee 
has any way of knowing that all of such transactions are being 
currently brought to their attention. 

It is therefore recommended that a complete inventory be 
taken of all equipment belonging to the district. In such an in- 
ventory equipment should be valued in detail and the total 
amount posted to the debit of a controlling account in the gen- 
eral ledger called "equipment." This account should be sup- 
ported by detailed subsidiary ledgers in which the location and 
personal responsibility for each piece of equipment would be 
fixed. For example, certain sections of the ledger would list all 
equipment charged to the principal of the Lochiel School build- 
ing to the office of the superintendent, etc. If advisable, further 
card records might be kept to show the total quantities and lo- 
cation of each piece of the different kinds of ecjuipment. New 
acquisitions would be currimtly debited l)oth to the controlling 
and subsidiary accounts. Tjikewise. losses, destruction, transfers, 
etc., would be shown through special condemnation and other 
reports, and would be promptly credited to the respective ac- 
counts. 

The task of taking such an inventory is a large one. How- 
ever, when once completed and the result made a matter of re- 
cord, it would be comparatively easy to maintain a perpetual con- 
trol over all equipment belonging to the district. The good re- 
sults of equipment control becomes very evident upon adoption. 

135 



Ill fact there is a decided tendeiiey to lower the cost of eqiiip- 
meiit by conserving what is already on hand. 

iSliihiiifj Fund Assits and LiahilUks: 

At tlie time of this survey sinking fund information was 
not obtained without a large amount of detailed work. In fact, 
investments amoiuiting to $15,000 did tiot appear in any per- 
manent record. Although the detailed sinking fund records 
should be kept by the treasurer, they should be controlled in the 
general ledger maintained l)y the accountant. Sinking fund as- 
sets may be of three sorts: (1) cash; (2) investments; and (3) 
amounts due from other sources. Separate general ledger ac- 
counts should therefore be carried for each group. 

Special a»<l Trust Finid Assffs and. LiaMUiies : 

At various times throughout the year the board ina}^ 
have assets in the way of cash or property which cannot be used 
for educational purposes, but which are being held in trust or 
for special purposes. The special and trust fund assets should, 
however, be rec(u-ded in the general ledger. 

Iiinnrdiate Demands for Cash: 

Efficient management of any business can hardly be 
maintained if there are no means of knowing at all times the 
amount of liabilities which are due and payable. For that rea- 
son general ledger accounts should be carried to cover accounts 
payable, bank overdrafts, interest on funded debt, and other sim- 
ilar items. It is extremely doubtful if the exact amount of such 
liabilities of the school district is ever known by the board. The 
"accounts payable'' account could be maintained easily by 
means of the proposed register of accounts payal)le and the reg- 
ister of warrant-checks. The former Avould furnish the total 
amount of invoices approved, while the latter would show the 
amounts which were paid. The difPerence or balance, therefore, 
would show the amount of approved invoices still unpaid, or the 
accounts payable. Similar procedures should be followed witli 
respect to all immediate demands for cash. 

136 



Jieserves: 

]5y "cfish reserves'' is meant cash or investments which, 
while properly belonging to other funds, have not yet been 
turned over. As sueh, it represents both a liability and an asset, 
the latter being included in the "amounts due the school dis- 
trict. ' ' Other reserve accounts should be carried to show the es- 
timated or actual liabilities which will eventually result from 
uncollectible taxes, rebates on taxes, unaccrued interest, unac- 
crued taxes, depreciation, etc. As such, they represent reserves 
for losses or expenses which should be taken into consideration 
in connection with the respective assets, such as revenues re- 
ceivable, cash, etc. For example, it would be manifestly unfair 
and misleading to set up as an asset the entire amount of the 
tax levy, knowing at the same time that such an amount will not 
prove to be fully collectible. 

,Loa)is: 

Loans ai'e i)()sitive liabilities and should l)e constantly a 
matter of record. At the present time the amount of loans is re- 
flected solely by minutes of the board and by copies of the notes, 
neither of which are adecpiate evidences of indebtedness at fu- 
ture dates when the loans may have been li(|uidated. 

D)ie Other Accoitnfs: 

Under this heading should be reported by funds any 
amounts included in the assets of the respective fund in the na- 
ture of cash, investments or other assets which properly belong 
to another fund. For example, in the current fund may be in- 
cluded cash which has not yet been turned over to the teachers' 
retirement fund. As such, it is a liability of the current fund and 
an asset of the special or trust fund shown under the heading of 
"amounts due." 

Surplus: 

The surplus account should represent the excess of the 
assets of any fund over its liabilities. Tn case there should be a 
deficit instead of a surplus a "deficit" account should be carried. 

137 



These accounts should be of especial interest to the members of 
the board. 

Bonded Debt: 

The general ledger should contain an account to show the 
gross bonded indebtedness. 

Revenues and Revenue Accounting 

General Description of Revenues. 

The following table shows the nature and amount of the 
revenues of the school district for the years 1915-1916: 



Real estate taxes, 

Personal taxes, 

State appropriation, 

Interest on sinking funds. 

Interest on bonds 

Premium on bonds 

Tuition 

Rent of school buildings, . 

Sales, miscellaneous 

Fines 

Fire loss 

Use of water 

Refunds 

Forfeit 



The school tax, which is the principal source of revenue, is 
fixed and accounted for in accordance with a procedure which is 
discussed in detail in subsequent sections of this chapter. 

The state appropriation is an amount fixed by the state in ac- 
cordance with certain educational statistics. 

Interest represents the earnings of the cash deposits and in- 
vestments both of the general and sinking funds. 

138 



1915. 


1916. 


$423,568.39 


$416,769.20 


7,352.00 


6,985.00 


46,888.65 


46,335.50 


5,773.76 


4,629.90 


358.87 


514.25 


3,202.27 
1,423.30 




3.050.30 


225.00 


449.50 


395.81 


116.70 


13.00 


16.00 


360.55 


5.755.72 


2.00 




121.10 


25.16 




500.00 






$489,684.70 


$485,147.23 



Pi'einiuins realized on Loud sales are eolleeted through the 
Secretary who at the present time handles all iiuitti i-s relating 
to bonds. 

Tuition is charged non-resident pupiLs according to the fol- 
lowing rates: 

High School i|?7 . 50 pcv month 

Eighth Grade 4.00 " " 

Sixth and Seventh Grades, 3.00 " 

Fourth and Fifth Grades 2.00 " 

First, Second and Third Grades 1.50 " 

Rent of school buildings is collected through the secretary. 
The only two buildings which are rented, and the prevailing- 
rates, are : 

Shimmel Building $5.00 per night 

Technical High School 7.50 (free entertainment) 

Technical High School 25.00 (admission charged) 

''Sales" cover cash realized from the sale of miscellaneous 
property, waste material, etc., and minor damages done to 
school property, such as books, desks, laboratory equipment, 
etc. 

"Fines" cover all amounts collected in prosecutions made in 
connection with the compulsory education laws. The custom- 
ary fine, which is $2.00, is eolleeted by the aldermen and turned 
over to the secretary. 

•'Fire losses," "refunds." "forfeits," etc., are self-explana- 
tory. 

Method of Deteroilniiif) the Amount of Ike School Tax. 

The following excerpts from the school law show the au- 
thoi-ity and regulations under which the school taxes are levied 
and collected : 

Section 501. "All taxes required by any school district in this 
Commonwealth, in addition to the State appropriation, shall 
be levied by the board of school directors therein." 

139 



Section 537. "In all school districts of the second, third and 
fourth class, all school taxes shall be levied and assessed 
hy the board of school directors therein, during the month 
of April or May each year, for the ensuing fiscal year." 

Section 539. ". . . . The city clerk or other proper official, 
shall annually, on or before the first day of April .... 
furnish to each school district of the second class .... 
a properly certified duplicate of the last adjusted valua- 
tion of all real estate, personal property and occupations 
made taxable in such school district " 

Section 546. ' ' In all school districts of the second class .... 
as soon as the school tax is assessed and levied by the board 
of school directors, the secretary shall compute and enter 
the same, stating the amount of school tax to be collected 
on the duplicate .... a certified copy of which shall 
then be furnished by the board of school directors to the 

tax collector in each district In all school districts 

of the second, third or fourth class, all tax duplicates shall 
be furnished, as herein provided, to the tax collector on or 
before the first Monday of July each year." 

Section 54.9. "Each collector of school taxes in every school 
district of the second, third or fourth class .... shall, 
on or before the first Monday of July in each year, be fur- 
nished with his tax duplicate, and a proper warrant, signed 
by the president and attested by the secretary of the board 
of school directors .... authorizing and directing him 
to collect the school taxes set forth in his duplicate, ac- 
cording to law." 

Section 553. "In all school districts of the second .... class 
.... every collector of school taxes shall make a writ- 
ten report to the secretary of the board of school directors 
at the end of every month of the amount of taxes collected 
by him during the said month, furnishing the names of the 
taxables from whom the same has been collected." 

The school tax therefore is based upon the property valua- 
tions as determined by the city assessors. 

140 



In the city of Ilarrisburg it is the intent of the law that as- 
sessment of property be at fnll value. This is an ideal which 
should be attained, but it is frankly admitted that property is 
actually assessed at little more than half its value, or at least 
on a tiuctuating basis. 

If assessors are allowed to establish a variable basis, many 
irregularities are certain to creep into the assessments. jMore- 
over, a low valuation means a high tax rate. Taxpayers are 
prone to consider the tax rate and amoinit of the tax rather 
than the assessed value of the property. Hence when the school 
board feels the need of asking for permission to issue bonds and 
is required to submit the proposition to a general vote of the peo- 
ple, the tax rate is a very important factor in the result of the 
vote. Comparison of the school tax rate of the Ilarrisburg 
School District with that of other cities must not be overlooked. 
Much lower rales in other cities might play an important part 
in the defeat of a bond issue proposition, as well as cause gen- 
eral dissatisfaction to the residents of Ilarrisburg ; yet, as a 
matter of fact, these low rates might be almost entirely due to 
a more equitable assessment of property, on a 100 per cent, 
basis. A general revision of assessment methods wauild add 
materially to both the revenue and borrowing capacity of the 
school district, and result in a more equitable distribution of the 
tax burden. As the school district is by far the largest single 
unit within the city government relying upon the tax le^y for 
its support, the board might very well interest itself in a strong 
effort to obtain more uniformity and fairness in the detei'mina- 
tion of property valuations. 

On a date prior to the submission of the duplicate tax-books 
to the board of school directors, the amount of money which is 
believed to be necessary for the operation of the schools district 
is fixed by the board. By deducting from this sum. estimates 
of the state appropriation and of the amount of miscellaneous 
revenues that will be received, the sum which it will be neces- 
sary to raise from taxation is ascertained. Also prior to the 
submission of the duplicate tax-books, the city assessors furnish 
the board Avith the total amount of the city's assessed valuation. 
"With these two amonnts at hand the secretary computi^s the 
millage tax-rate. 

141 



Frepuration of Tax Bolls. 

When the assessment lists or duplicate tax books tiave 
been received from the city, the secretary computes the school 
tax on each piece of property, entering the several amounts in 
the duplicate tax-books. A warrant with the amount left blank 
but signed by the president of the board and attested by the sec- 
retary, is then prepared and sent to the treasurer as authority 
and order for him to collect the school taxes. 

The state law also specifies that: "Each male resident or 
inhabitant, over twenty-one years of age, in every school district 
of the second class .... shall annually pay .... for the use 
of the school district .... an occupation tax of at least one 
dollar." 

The procedure followed in levying this tax is substantially as 
follows: In preparing the duplicate tax-books, the assessors place 
a small distinctive check mark opposite the name of each prop - 
erty owner against whom it is believed to be legal to levy tne 
occupation tax. By means of this check mark, the secretary 
levies the dollar tax in a column provided for that purpose in 
the duplicate tax-book. No proof is made of the correctness of 
the work of the assessors in designating the occupation taxpay- 
ers, or of the secretary in properly lev.ying the tax. As a mat- 
ter of fact, many persons owning several pieces of property in 
different wards are frequently assessed an occupation tax in con- 
nection with each piece of property. This leads to many adjust- 
ments, annoying to the taxpayer, the treasurer and the board 
of directors. Similarly, there is no assurance whatever that all 
persons named by law as taxable have been so designated or 
taxed. 

It is also legal to collect the occupation tax from all males over 
twenty-one years of age who do not OAvn property, and hence do 
not appear on the assessment rolls. The state law specifies tnat 
the lev^'ing of the tax on such non-property owners shall be done 
"by the proper assessors of the school district." The assessors, 
however, have no knowledge of non-property owners, and hence 
do not comply with the above provision of the law. The board 
of directors in order to take advantage of the additional revenue 
possible through this provision, has instructed the treasurer to 

142 



prepare a list of non-property owners from the election regis- 
tration lists. This has been done and a special occupation tax- 
book, containing approximately 15,000 names, is the result. This 
book, which is not totaled or verified in any waj-, remains with 
the treasurer. It is not even submitted to the board or secretary 
for examination. Occupation taxes are therefore levied in two 
sets of books — the regular property owners' tax-book and in a 
special non-property owners' book. 

It might be added that the legality of such a non-property 
owners' occupation tax record, not prepared by the city assess- 
ors in accordance with the law, might be subject to investigation. 
In any event, efforts should be made to have this work done by 
the proper authorities. 

One of the most surprising features observed in connection 
with the preparation of the tax rolls is the fact that no one 
knows the exact amount of the original school tax levy. Hence 
in preparing the warrant ordering the treasurer to make collec- 
tions, no amount can be specified. In other words, the treasure!- 
is ordered to collect taxes the exact amount of which no one 
knows. 

The amount of the original tax levy is unknown, mainly be- 
cause no one has taken the trouble to total the tax lists after the 
secretary has computed and entered the amounts of the individ- 
ual taxes. Theoretically, the total tax actually levied should 
equal the amount estimated as necessary to be raised by taxation. 
In other words, the multiplication of the niillage rate by the as- 
sessed valuation, plus the amount of the personal taxes, should 
result in the exact amount of the lev^^ Likewise the sum of the 
computations entered on the duplicate tax roll by the secretary, 
plus personal taxes, should equal the total levy. This theory 
however does not apply, for the reason that many changes are 
usually made in the assessments lists after a total assessed valua- 
tion figure — upon which the mill age rate is fixed — has been fur- 
nished the school district, and before the individual computa- 
tions have been made by the secretary. Moreover many mistakes 
are liable to occur in making the thousands of computations. 

There is very little control over the taxes, it being possible for 
the treasurer to collect them, retain portions tluM'eof. or divert 

143 



same to purposes other than those specified by law, without auy- 
one having knowledge of the fact. This situation should not be 
allowed to exist. The recommendation is therefore made, that all 
completed tax rolls be verified and totaled before being sent to 
the treasurer for collection. The total amount should be shown 
in the warrant ordering the treasurer to collect, and be set up in 
the general ledger, in a controlling account called "taxes receiv- 
able." This account would control the collections of the treas- 
urer and would show at all times the "tax receivable" asset of 
the school district. 

Collection and Accounting of Taxes. 

All current taxes, both real and personal, are eolleetod by 
the city and school treasurer acting as collector of school taxes. 
Until a comparatively recent date each collector was required 
by law to collect all of the taxes appearing on his tax rolls. This 
meant that each retiring collector must take with him his own 
tax-books and endeavor to collect all back taxes. This law has 
very properly been changed. When delinquent taxes have been 
converted into property liens, the tax records are cleared and 
the work of collecting on the liens is given to the secretary of the 
board. Hence, at the present time there are three officials 
charged with the duty of collecting taxes ; namely, the present 
treasurer, the former treasurer and the secretary. This is a 
poor allocation of work. A much more preferable way would be 
for all taxes, whether current, delinquent or in the shape of 
liens, to be collected through the one official, the collector of 
school taxes, who is amply paid for such work. 

The collection of the occupation tax levied on property own- 
ers, does not present many difficulties for the reason that the col- 
lector very properly refuses to accept the amount of the prop- 
erty taxes unless accompanied by the dollar personal tax. 

The collection of the occupation taxes, however, with rc^speet 
to non-jiroperty owners, presents a more difficult proljlom, for 
the reason that the cost of enforcing collection is usually entirely 
out of proportion with the amount of the tax. That compai*a- 
tively little attention is paid to the collection of these taxes is 

144 



illustrated by the fact that for the past year only about $8,000 
were collected of the total levy amounting to nearly $15,000. 

When taxes are collected, the collector retains the stub of the 
tax receipt, on which is shown only the gross amount of the pay- 
ment. No distinction is made on this stub between the amounts 
of the real and personal taxes or the interest or penalty which 
may have accrued thereon. From these stubs the payments are 
individually entered in the tax-liooks opposite the description of 
the respective properties. No cash book or other record of in- 
dividual collections is maintainc^d. Instead, the stub receipts are 
totaled at the end of each day. the amount thereof being entered 

in the journal or day book, solely as "taxes year " 

Hence, there is no way of knowing the amount of real taxes, per- 
sonal taxes or penalties which have been collected for an,y per- 
iod, other than by totaling the respective columns in the several 
tax-books. Penalties or interest represent revenues over and 
above the tax levy and have no accoimting relation thereto. 
They should therefore be recorded and reported separately. The 
absence of a cash book makes the receipt stub (itself incomplete) 
the sole posting medium, both to the tax-book and cash record or 
journal. Loose stubs which are easily lust or misplaced, should 
not serve as permanent records for the support of annual col- 
lections amounting to several hundred thousands of dollars. 

The use of a register of receipts is suggested for improving 
the methods of recording tax collections. In this book should be 
entered each collection a.s received. The information shown in 
the book should be as brief as possible. Separate columns should 
be provided for real taxes, personal taxes and penalties, both 
for the current and for all prior years collectively. At the end 
of each day. the totals of these columns would show the total 
collections already distributed according to revenue accounts, 
which amounts should be entered in total to a suiimiary cash 
book. 

In connection with the school tax problem, special attention 
is called to section 553 of the school law. which is not strictly 
observed. This section is in part, as folloAvs: 

"In all school districts of the second, third and fourth 
class .... every collector of school taxes shall make a 

14b 
C of C — 10 



written report to the secretary of the board of scliool direc- 
tors at the end of every month of the amount of taxes col- 
lected by him during the month, furnishing the names of the 
taxables from whom the same had been collected " 

By this section the collector would be legally required to re- 
port to the secretary in detail every tax collected, giving tne 
name of the taxpayer and the amount of the tax, thereby prac- 
tically duplicating the amount of work now necessaiy in the col- 
lection of school taxes. It would, in fact, reqviire him to copy 
in some detail most of the records which he now maintains. It 
would even require him to elaborate greatly on his own records. 
The secretary and the boards have no interest whatever in the 
individual taxes that are paid. It makes no difference to them 
whether John Jones pays his taxes in September or October, or 
whether John Roe paid $30 or $40 school tax. In fact, abso- 
lutely no practical use would or could be made of such an elab- 
orate report. If such a report were used as the means of estab- 
lishing a control over the tax collections, there would be less ob- 
jection to the law, but inasmuch as no more control would result 
than is now obtained by the annual audit of the tax-books, it is 
believed that the above provision is unnecessary. 

Tax Adjustments. 

No matter what methods are employed, or how much care 
may be taken in the preparation of tax rolls, there is every likeli- 
hood that mistakes will be made. These naturally lead to ad- 
justments. At the present time overpayments are refunded by 
action of the board, the warrant being charged to the '"contin- 
gent" appropriation. Errors detected before payment usually 
consist of: (a) errors in assessed valuation; (b) errors in com- 
putation; (c) errors in occupation taxes. 

Errors in assessed valuation are adjusted by action of the city 
board of tax revisions, no record of them being furnished the sec- 
retary or board of school directors. Errors in computation are 
corrected by action of the board of school directors, while errors 
in the occupation taxes may be adjusted either by action of the 
school directors or directly by the treasurer. Due to the lack of 

146 



a real general ledger, no journal or ledger adjustments are 
made, the book entry being merely in the tax lists. 

Under the proposed accounting system, all adjustments must 
be currently reported to the secretary, in order that the neces- 
sary histoi'ical data may be properly recorded. Each adjust- 
ment — or if a register of adjustments be used, the monthly total 
of all adjustments — should be journalized, the entry being: 

Dr. — Revenue — Real Estate Taxes 
Revenue — Personal Taxes 
To — Taxes Receivable — Real Estate 
Taxes Receivable — Personal. 

Collect io)i of MisceUoneous Revenue. 

The miscellaneous revenues of the board consisting of all 
revenues other than taxes, are collected almost entirely through 
the secretar,y. It is the secretary who must see that tuitions are 
paid ; who must arrange for sales and actually make resulting col- 
lections; who must see that the board is reimbursed for the use 
of the various school buildings ; in fact, aside from the taxes 
payable only at the office of the tax collector, the state ap- 
propriation and interest on deposits, the secretary acts as col- 
lector of practically all school moneys. The collection of 
revenues, however, should be one of the principal functions of 
the treasurer. It is not in accordance with good accounting and 
auditing principles for the secretary, who should act as the gen- 
eral accountant of the board, to make colliM-tion of those bills 
or accounts which he himself may have prepared or authoiMzed. 

It is therefore reconnnended that the board change its rules 
and regulations so that the treasurer will be required to perform 
this most important function which properly belongs to his of- 
fice ; namely, the collection of school fimds. At the same time 
the board should see that these transactions are fully controlled 
by the accounting records of the secretary. 

The secretary has adopted no stated procedure of foi-ms by 
which collections shall be turned over to him. or by him to the 
treasurer. Principals and teachers remit money collected by 
tliem usually at the end of a term or the scliool year. The sec- 

147 



retary remits to the treasurer at irregular intervals and in va- 
rious ways. 

As an aid in reporting and eontrolling cash collections, a spe- 
cial form should be used by all employees authorized to receive 
school money. It should be made in triplicate by the transmit- 
ting official. The original copy should be sent to the treasurer 
with the cash. The duplicate copy should be sent at the same 
time to the secretary as the medium for making the accounting 
entries and of establishing control, while the triplicate copy 
would remain as the file copy of the transmitting official. 

Before a non-resident pupil may be legally accepted in any of 
the city schools, a formal application must be favorably acted 
upon by the board. Whenever necessary, however, in order not 
to inconvenience the pupil, the secretary grants a temporary 
permit, pending the action of the board. Although the rules 
and regulations specify the monthly rate to be charged, they fail 
to state whether or not it is payable in advance. As a result, 
it has become customary for the secretary to prepare the tuition 
bills at his convenience, usually once a quarter, and they are not 
sent in advance with the natural result that some tuitions are 
never paid. If a non-resident pupil desires to enter one of the 
city's schools, it is usually with the intention of receiving at 
least a full term's instruction. It is recommended, therefore, 
that beginning with the next school year, all tuition be payable 
in advance and at a full term rate. Bills should bo prepared and 
registered by the secretary and be made payable to the treas- 
urer. 

The board, through the teachers and principals, charges small 
fees or penalties for breakage of equipment, damage to or loss of 
text books, etc. These penalties are included under the head- 
ing "fines." Under this heading are also included the various 
charges that are made for the use of text books by pupils during 
the summer. In every case the amount of the ''fine" is deter- 
mined by the teacher or principal. In the (^leinei)tary schools, 
the amount of these "fines" is very small, the total for the entire 
year seldom exceeding a few dollars. The principals retain 
these collections luitil the end of the school year. Avhcn thev are 
transmitted to the secretary. 

148 



In the two high schools, however, the "fines" are more fre- 
quent and in larger amounts. For some reason — perhaps because 
of the lack of petty cash funds — the principals of the high schools 
are not required to transmit or report the amount of the ' ' fines 
either to the secretary or treasurer, but are allowed to spend 
them as petty cash funds. Many small miscellaneous purchases 
are made therefrom. At the Central High School the amount of 
this fund is usually more than seventy-five dollars. Such a 
system, whereby the central office is not even advised as to the 
amount and nature of either the receipts or expenditures, pre- 
vents the general books from reflecting true data regarding both 
revenues and expenses. 

Each of the high schools should be provided with a petty 
cash fund, and principals, teachers and all other employees 
should be required to deposit all collections with the treasurer, 
reporting the nature and amount of the collections to the secre- 
tary by means' of the special form already proposed herein. In 
the case of the two high schools, this' should be done at the end 
of each calendar month. In the elementary schools, the amount 
of fines is probably too siuhII to warrant mor<' tlum one report 
at the end of each term. 

The board has not adopted a special bill form or invoice, the 
secretary merely preparing bills on ordinary letterheads. Bills 
are neither registered nor numbered; and, as they are not pre- 
pared in duplicate, there is no convenient method of ascertain- 
ing at any time, either the nature or amount of the outstanding 
accounts receivable. ^Moreover, except by relying on memory, 
there is no positive way of knowing whether or not bills have 
been actually rendered. Through the lack of complete account- 
ing records, there is every possibility of bills being entirely 
overlooked or neglected until the account has become uncollect- 
i])]e. It is true that the accounts receivable are comparatively 
small, but they should be even more carefully controlled and re- 
corded than the bills rendered against the board. 

It is therefore recommended that the board adopt both its own 
bill form and a special "register of accounts receivable." Bills 
should be prepared whenever the cash payment is not coincident 
with the service or sale. They should be prcpai-od in duplicate 

149 



by the secretary, the original being sent to the debtor and the 
duplicate to the treasurer. It is believed that, inasmuch as the 
secretary would maintain the register of accounts receivable, no 
copy of the bill need be retained in this office. If, however, the 
secretary desires a file copy, the bill may be prepared in tripli- 
cate. On the face of the proposed form it should be stated that : 
' ' All bills are payable at the office of the treasurer. ' ' 

Revemie Control. 

Since the exact amount of the tax levied for any year is 
not known, it naturally follows that the amount of uncollected 
taxes — at times of the year, a very large and important asset — 
must likewise be unknown .just as the amount of miscellaneous 
accounts receivable is also unknown. This situation is unneces- 
sary and should be remedied. 

As a means of controlling revenues the nature and exact sum 
of all amounts due the board should first be ascej-tained. These 
sums should then be set up in the general ledger under such 
controlling accounts as "taxes receivable — current year." "taxes 
receivable — prior years," and "accounts receivable." When- 
ever a new tax list becomes due and payable, or when the total 
of all the bills for services or material sold which have been reg- 
istered during a month have been ascertained, these amounts 
should be .journalized and debited to the respective controlling 
accounts, the entry being: 

Dr. — Taxes Receivable — Current year 
Taxes Receivable — Prior years 
Accounts Receivable 
To — ReA^enues. 

The cash collections for each month Avould ]irnvide the corres- 
ponding credit, the entry being : 

Dr. — Cash ( Treasurer ) 

To— Taxes Receivable— Current Yeaj* 
Taxes Receivable — Prior Years. 
Accounts Receivable. 

In this way the balance of each controlling account would re- 
flect the total of the uncollected bills in the hands of the treas- 

150 



urer and would give the amount of the assets of this nature to 
be shown on the monthly balance slieets. 

Cash. 

Aside from miseellaneous slips or personal memoranda, 
the cash collections made by the secretary are not recorded. In- 
stead they are held in the safe pending the convenience of the 
secretary when they are personally handed to the treasurer with 
a brief description as to the nature of the receipts. This descrip- 
tion may be either verbal or in writing, depending upon the num- 
ber of the transactions. The treasurer records all receipts in the 
so-called .iournal or day book. This book covers all kinds of 
transactions, whether they be of cash or not. It is a most in- 
complete record and apparently of little accounting value. A 
real cash book, or a compact and complete record of receipts and 
disbursements is not to be found either in the office of the secre- 
tary or the treasurer. 

The forms of cash records which are believed to be adapted to 
the needs of the Harrisburg School District are briefly described 
in the appendix to this report. 

Petty Cash. 

The board has not authorized petty cash funds although 
petty payments are made frequently hy the secretary. Such 
payments cover postage, carfare, cartage, expressage, freight, 
etc. Whenever occasion arises for making these small cash pay- 
ments, the secretarj^ draws from the cash which has been re- 
ceived from tuition and other sources and not yet turned over 
to the treasurer. At various times throughout the year, the secre- 
tary draws a warrant for the amount of the petty payments and 
reimburses this undeposited fund. This method is believed to 
be wrong in principle. All cash receipts should be currently de- 
posited with the treasurer and any petty payments should be 
maxJe from a petty cash fund operated under the approved im- 
prest system which is substantially as follows: 

An estimate should first be made of the amount which will 
cover the petty payments for a fixed period to be adopted as a 
standard unit — say one month. A warrant should then be drawn 

1.51 



for this amount and be charged in the general ledger to an ac- 
count called ' ' petty cash. ' ' The cash received from this warrant, 
which would constitute the petty cash fund, should be kept un- 
der the custody of the secretary, principal or other employee. 
No payments should be made from this fund unless properly sup- 
ported by a receipt. On the last day of each month, these re- 
ceipts should be assembled and a warrant prepared for the total 
amount. This voucher-warrant should show a distribution of the 
payments according to the various expense accounts affected, the 
accounts being charged accordingly. The original "petty cash" 
account in the general ledger would remain unchanged. The 
cash received from the new warrants should be applied to reim- 
burse the petty cash fund, which would therefore, at all times 
equal the original sum, either in cash or in receipts. By such 
a method the secretary and others if necessary will always have 
available cash for making small and emergency payments. Petty 
cash funds, while very desirable are frequently abused, in that 
many payments are made from them which should properly be 
covered by separate warrants. Definite rules should, therefore, 
be established and observed, whereby the nature and size of pay- 
ments to be made from petty cash may be regulated. 

Expenditure Documents (Other Than Payrolls) 

Form and Use of Present Invoice. 

While the board has adopted a specially printed form 
Avhich might sinwe as its own invoice, still it is not so used, nor 
is it well designed for the purpose. Although in form it is in the 
nature of the ordinary commercial invoice, it is used merely as 
a voucher or cover for approved invoices. Instead of sending 
copies of this form to the vendor with the purchase order with a 
request that he submit bills on it, vendors are allowed to render 
their own invoices. When these are received and have been ap- 
proved, all invoices in favor of the same vendor are pasted on 
one of the school district invoice forms, on the back of which is 
indicated the total amount of the voucher and the approjiriation 
account to which it is chargeable. The printing on the front or 
face of the form is never used and might be entirely eliminated. 

152 



In the appendix to this report is described in detail the style 
of invoice which it is believed the Harrisburg school district 
should adopt. The procedure recommended in connection with 
this form calls for the preparation of all invoices ia duplicate 
and only on the form prescribed by the board. Upon receipt 
from the vendor one copy of the invoice should be sent at once 
to the employee of the school district who is to receive the ma- 
terial or inspect the service, with instructions that if the invoice 
is correct as to quantity and quality the special eertitieate to 
that effect, which is provided for on the form, be signed, and 
that the invoice be then returned to the office. I^pon further 
certification by the secr-etaiy or his clerks as to the correctness 
of prices and (extensions, the original invoice would become an 
invoice-voucher and be the copy which eventually would be at- 
tached to the warrant-check. The duplicate copy would re- 
main in the secretary's office as evidence of outstanding in- 
voices until the approval has been completed, when it could be 
used for general expense distrilmtioii and other purposes and be 
then filed according to vendor or in any other manner which 
might be found to be more convenient. The reverse side of the 
proposed invoice form provides special columns l)y means of 
which a distribution of the amount of the invoice according to 
funds and appropriations may be made. This feature would 
eliminate the present necessity of requiring separate invoices to 
be rendered for th(> different funds and appropriations which 
may be chargeable. 

Approval of Invoices. 

Final approval of invoices rests with the board. Yen- 
dors render but one copy of invoices direct Ut the office of the 
secretary. If the material or services l)ille(l thereon have been 
delivered or rendered at the building in which both the store- 
house and secretarj^'s office are located, examination of the cor- 
rectness of the invoice is done by the secretary or by one of the 
employees attached to his office. In such cases tlie examination 
or inspection, which is indicated by an approval on the face 
of the invoice, seems to be adequate. Likewise, whenever ma- 
terial or supplies ai'c delivered direct to one of the several school 

153 



builcTings, the methods of approving invoices are in general to 
be commended. In such cases, the invoice is sent to the point of 
delivery where approval is made by the teacher or other em- 
ployee for whom the purchase was made. 

In the case of repairs, however, the method of approving in- 
voices is most inadequate. No field inspection whatever is made 
by anyone connected with the central office. Instead, it has 
been customary for janitors, principals and others to telephone 
— usually upon the request of someone in the central office — 
information regarding the repair work which has been done. 
Such information from employees who frequently are not quali- 
fied to pass upon repair work is sometimes no more than "work 
has been done." Whether or not the quantity and quality of 
service rendered or of the materials used are in any way com- 
mensurate with the services and materials actually invoiced, or 
even Avhether the repair work has been satisfactorily completed, 
is not a matter of positive information at the time the invoice 
is passed for payment. Upon such information the secretaiy 
must approve repair invoices. 

The board has adopted a rule whereby the committee on fi- 
nance shall receive, examine and recommend for payment all 
bills and claims against the board on the Thursday preceding 
the first Friday of each month. A rule has also been adopted 
whereby bills and claims will be considered for payment by the 
board as a whole only at the first meeting of each month, Avhich 
is on the first Friday. This means that the secretary must see 
that all claims or bills covering materials or services rendered 
in any one month are properly prepared and presented on or 
before the Thursday preceding the first Friday .of the month 
in order to insure payment before another month has elapsed. 
In case the first Friday falls on the first day of the month, bills 
must be prepared and submitted to the finance committee on 
the last day of the month. In this way, unless a vendor's bill 
is received by the board not later than the afternoon of the 
last day of a month, it cannot be paid until the early \mrr of 
the second succeeding month. This is hardly fair to the ven- 
dor. Instead of causing vendors to become so provoked with the 
"red tape" and special rules and regulations that they will 

154 



have little or no desire to compete for the business of the school 
district, every effort should be made to interest them and to 
deal with them in the businesslike manner which they have a 
right to expect. 

It would seem fairer and much more businesslike if the boai'd 
would determine upon a definite date each month on which 
payment of all approved invoices on which no cash discount is 
to be allowed would be made. Although such a move would 
necessitate a radical change in the present procedure of the 
board, it can be readily effected as hereinafter outlined. Even 
if it be held that the law reciuires the board to approve claims, 
that can be made a matter of simple formality. (In fact, that 
is about all it is now). 

Before presentation to the board for approval each bill has 
been certified as correct, the prices having bi^en verified by the 
purchasing clerk, and the quantity and quality — so far as pos- 
sible under the present organization — by an employee who has 
first-hand knowledge of the facts. If responsibility were prop- 
erly located, the bills at this time would not need to be sub- 
jected to a further detailed scrutiny by the mendiers of the com- 
mittee. Yet, as a matter of fact, the secretaiy is required to 
read to the committee on finance not merely the total amount 
but the details of each bill. Such a procedure might be of value 
if the members of the committee were in a position to know 
the particulars of the indebtedness, but inasmuch as each mem- 
ber of the board presunmbly has other interests to which he 
must devote the greater i)ortion of his time the approval or 
examination of the bills made in committee meetings can be no 
more than perfunctory. ^Moreover, although the secretary 
reads or explains many of the details of the bills, the official 
approval as recorded in the minutes specifies only the total 
amounts chargeable to the various appropriations. The mem- 
bers of the connnittee seldom take the trouble to ascertain 
whether or not the total of the bills read or explained by the 
secretary actually agrees with the total amount of payments 
which have been officially approved. It would be a simple mat- 
ter to include in the total amount acted upon by the connnittee 
doubtful liills. the details of whicii bail not been I'ead to oi- I'x- 

155 



iHiiiiird by the ooinmittee. The members ol; tlio committee can 
seai'cely be blamed for lack of interest in the monotonous read- 
ing of the uninteresting details of bills of which they know lit- 
tle and which have already received the approval of the secre- 
tary — the one employee of the board who is best (|ualified nnder 
the present methods to make such an approval. With few ex- 
ceptions therefore the approval of bills by the finance committee 
is decidedly perfunctory, the one signature or approval — that of 
the secretary — being usually the deciding factor. 

The approval by the board as a whole on the day following 
action by the committee on finance is likewise perfunctory. In 
this case the bills are not read in detail, but are brought to the 
meeting so as to be available for inspection by members of the 
board if desired. Uppn motion, the bills chargeable to each ap- 
propriation are approved in total, the approval being based 
mainly on the previous approval of the committee on finance. 

In neither of the above steps is there any real examination of 
the correctness of the bills. The members of th(^ l)oard do not 
have the time necessary to examine the material received or 
services rendered. Furthermore, unless they should be particu- 
larly interested in some special project — purchase or repair — 
they would hardly be in a position to pass understandingly on 
the merits of the bill or claim. In any event it hardly seems 
necessary for bills to be acted upon (1) by the secretary acting 
for the board; (2) by the finance committee of the board, and 
(3) by the board as a whole. 

Location of responsibility is what is most needed with respect 
to the payment of bills. It is therefore recommended that as a 
part of the installation of the "proposed accounting procedure 
outlined in this report responsibility for the approval of each 
fuiancial transaction be definitely located and evidenced by a 
signed certificate on the face of the document to be acted upon. 
In other words, it is recommended that the approval of bills 
be expressed — 

1 — On the face of the invoice. 

a — By the receiver of the goods, as to quantity and quality, 
b — By a clerk, as to prices, extensions, postings, etc. 

2 — On the face of the warrant-check. 

156 



a — By the secretary, as to general eoi^-ectness of all the 
invoices covered by the warrant and of the warrant 
itself. 

b — By the president of the ])oard acting for the boai'd as 
a whole as to correctness of warrant and snpportiiig' 
signatures. 

c — By the treasurer upon order of the board, as to suf- 
ficiency of fluids. 

This change in procedure would detract little or nothing from 
the real powers of the board, nor would it increase in any way 
the liability for errors or abuses, for it should be borne in mind 
that the board would have already acted upon the propriety of 
all annual contracts or purchases of any great size. The re- 
sponsibility for the placing of small minor orders and for the 
correctness of invoices as to prices, extensions, cjuantity and 
quality of goods could without a doubt be safely tielegated to 
responsible employees in possession of the facts, especially when 
the evidence of correctness would be further substantiated by 
the signature of the secretary, the president of the board and 
the treasurer before payment was actually made. 

Another serious defect in the present method of approving 
bills is the liability of the board to take advantage of the custom- 
ary discount which is allowed for prompt payment. Becaiise 
of the fact that the board acts on bills only on the first Friday 
of each month, many bills containing a clause specifying a 2 
per cent, discount if paid within ten days must await the regu- 
lar meeting night at least thirty days later, and as a result the 
board is seldom able to take advantage of cash discounts. 

Every ])usiness man knows the value of discounts. IMany 
private concerns attempt to finance the operation of the pur- 
chasing department solely with discounts taken, and many con- 
cerns succeed in this respect two or three times over. 

The importance of the delegation of specific responsibility by 
the Imard to its employees is brought out many times through- 
out this report. Tn no respect is it more important than in the 
jmyment of bills. With Ihe elimination of board approval bills 
might be paid at any time during the month, thereby enabling- 

157 



a substantial saving to be made through cash discounts. While 
it is true that the greater portion of the school district's pur- 
chases are made under annual contracts or agreements which 
may not permit of a cash discount, still there is little doubt but 
that the discounts which might be taken on the current pur- 
chases made throughout the year would at least cover a con- 
siderable portion of the salary of the purchasing agent. 

Registration and Accoxiitiiig of Appyoved Invoices. 

The amounts of approved invoices are not posted to any 
of the general books of account, the first real accounting con- 
sideration given them being at the time the warrants are posted 
to the appropriation ledgers. Neither are approved invoices 
numbered or registered. Several invoices in favor of the same 
vendor may be grouped and paid by the one warrant, or in case 
they are chargeable against two or more appropriations they 
may be included under any one of as many warrants. Hence 
there is no convenient way of locating specific invoice informa- 
tion. As soon as an invoice has been approved, it becomes a posi- 
tive liability and should be treated accordingly. Under the 
present system, however, bills are not so treated and it is not 
possible to tell at any time the amount of accounts payable. 

The proposed accounting system includes a register of ac- 
counts payable, in which each approved invoice should be en- 
tered. The sheets of this loose-leaf register should provide spe- 
cial columns by means of which the amount of each approved 
invoice may be currently distributed both according to funds 
and appropriations, and by means of insert sheets according to 
any expense classification which may be decided upon. It 
should be borne in mind that these various segregations should 
be made currently and not at the end of each month or year 
when there would be a rush of other business. The monthly to- 
tals of these columns would provide the amoimts to be posted 
to the various controlling accounts in the general and subsid- 
iary ledgers. 

As a safe and convenient means, both of lessening the amount 
of clerical work and of providing reliable control, it is recom- 
mended that each invoice be numbered and registered con- 
secutively as approved. 

158 



Warrants. 

Tile board has adopted a special form of warrant which is 
merely an order on the treasurer (signed by the secretary and 
president of the board) to pay a certain sum of money to the 
person or persons specified. Upon the designation of a bank, 
the signature of the treasurer converts the warrant into a 
check. Neither the warrant nor the stub show the particulars 
of the bills which are being paid. Under the present procedure 
whereby the invoices are sent to the vendor with the warrant- 
check, the present form is adequate except that it is necessary 
to repeat on the stub much of the information shown on the 
warrant. However, in connection with the proposed accounting 
system the use of a more approved form of warrant-check is 
recommended. The advantages of a form which is nuich more 
complete and adequate in every wa.y are discussed in a subse- 
quent section. 

When the invoices have finally been approved by tlic ])()ard. 
the secretary prepares the warrants. Although there are many 
instances where two or more invoices are in favor of the same 
vendor Init chargeable to different appropriation accounts, a 
separate warrant is drawn for each appropriation. In this way 
it sometimes happens that five separate warrants may be pre- 
pared in any one month for the same vendor. If it were pos- 
sible for any vendor to furnish material or services, a portion 
of the cost of which might be chargeable to each appropriation 
account established by the budget, the present method would 
i-equire the preparation in a single month of as many warrants 
in favor of one vendor as there were appropriation accounts. 
The amount of unnecessary work resulting from this system is 
too great to be overlooked. Not only in the preparation of the 
^^•arrant-checks, but in the many duplicated signatures on the 
]iart of the secretary, the president of the board and the treas- 
uri'r this unnecessary work is evident. 

Under the proposed system of accounting, especially by the 
use of the proposed warrant-checks, it will be necessary to pre- 
pare but the one monthly warrant foi* all invoices in favor of 
the same vendor which are payable from the same "funds." 

159 



When the warrants have been signed by the secretary and 
president of the board, the names of the payees and amounts of 
the warrants are listed on schedules arranged according to ap- 
propriation accounts chargeable. These schedules are used both 
by the secretary^ and treasurer as the medium for posting the 
charges to the respective appropriation ledgers. This step will 
not be necessary under the proposed system. Instead, appro- 
priations would be ehai'ged from the approved invoices recorded 
in the register of accounts payable. The treasurer, on the 
other hand, would record each warrant in the register of re- 
ceipts and disbursements solely by funds. 

When the warrants have been converted into checks by the 
signature of the treasurer they are returned to the secretary's 
office, w^here the checks are attached to the rspective approved 
invoices and vouchers. All of these documents are then mailed 
to the vendors, with the request that payment be acknowledged 
and the invoices or vouchers returned to the secretary. By such 
a procedure the board is releasing from its possession, for the 
time being at least, every document which it has in support of 
such disbursement of school funds. Each year there are sev- 
eral instances where it has been impossible to obtain the return 
of the original invoices. In such cases an attempt is made to 
obtain a duplicate receipt, but such attempts frequently result 
only in acknowledgment of the total payment. Sometimes not 
even an acknowledgment is received. Too much care cannot be 
taken to secure and retain every document in support of the 
disbursement of school funds. Moreover, if such a situation is 
allowed to continue it will be an impossibility to prepare com- 
plete expense records. 

B}^ using the proposed warrant-check there will no longer be 
any need of sending to the vendor any more than the warrant- 
check itself, on which will be listed each invoice which is being 
paid. At the same time a copy of the warrant-check will be 
retained and be filed with the original supporting invoices. En- 
dorsement of the check would automatically acknowledge re- 
ceipt of payment. 

Practically all of the work of paying bills, even to the extent 
of mailing the checks to the vendors, is done by the secretary. 

160 



Under the present system this may to a certain extent be ad- 
visable, but if the recommendations made throughout this report, 
especially those with regard to the use of the warrant-cheek 
form, are adopted the function of disbursing school fluids should 
be delegated to the treasurer. This means that when the war- 
rants had been signed by the treasurer, they would be mailed 
dirctly to the vendors liy him instead of being sent to the secre- 
tary for distribution. 

For some reason the seci-ctary instead of the treasurer speci- 
fies on each warrant — ])y means of a rubber stamp — the bank 
on which the warrant is to be drawn. "While this procedure may 
have been authorized by the treasurer, still the designating of 
the bank is a function belonging entirely to the treasurer him- 
self. 

Warrants covering approved invoices must be signed b}' the 
secretary and l)y the president of the board before being sent 
to the treasurer. The secretary' signs in ink. Both the presi- 
dent of the board and the treasurer use a rubber stamp fac- 
simile under the plea that a pen and ink signature would con- 
sume too much time. This practice is to be condemned. Tt is 
recommended that the board adopt a rule providing that all sig- 
natures on the warrant-checks be made in ink. 

Payrolls and Payroll Accounting 

'ri)ne Records. 

The use of time records at present is limited to the teach- 
ing force and to the one form called "report of lateness and 
absence of teachers." No detailed records whatever are kept 
to cover the time worked by the .janitors, repairmen or general 
office employees. Although the number of employees whose time 
is not entered daily in a time record is comparatively small, 
there should be no exception made in their cases. Payrolls for 
these particular employees must now l)e prepared from general 
observation, supplemented by miscellaneous information re- 
ceived either verbally or by means of various unofficial docu- 
ments. 

161 
C o»-- C — 11 



Inasmuch as over 60 per cent, of the budget of the Harris- 
burg school district is for personal services, the payment for 
which should be based on properly certified time records, it is 
recommended that a time record be kept for every employee of 
the department, the time being entered daily. 

It is the present practice at the end of each pay period for the 
principal of each school to prepare from the "report of late- 
ness and absence of teachers" a summary report called "ab- 
stract of report of lateness and absence." This report is sent 
to the office of the secretary and is used as the basis for pre- 
paring the payrolls. It shows the names of all teachers, together 
with details of lateness and absence and the names of substitute 
teachers. In case a teacher has neither been late nor absent, no 
time is shown. Except with respect to the time worked by substi- 
tute teachers, the report is a negative time report. It is also a 
statistical document showing information which is copied subse- 
quentl.y both in a large bound book called "consolidated report 
of lateness and absence" and also on a special report form 
which is sent to the superintendent of schools. There are thus 
in the secretary's office three separate records of lateness and 
absence. It is suggested that the board should discontinue all 
these forms and authorize the use of a combination time record 
and time report to be used by the head of each school or other 
organization imit. On this form, which should be prepared in 
duplicate by carbon process, the principal or head of each office 
should record each day the time worked by each employee as- 
signed to his unit, together with any statistical or other infor- 
mation which might be desired. At the end of each pay period, 
the time earned, the absences, etc.. should be totalled and shown 
in the special columns provided for the purpose. The orig- 
inal copy should then be certified as correct and sent to the 
office of the secretary. In this way the one form will take the 
place of both the report and the abstract of lateness and ab- 
sences, and will at the same time furnish the secretary's office 
with as much payroll information as is now shown by the two 
forms. 

Any statistics needed by the superintendent could readily be 
compiled from the time report, which would be always on file 

162 



in the seeretaiy's offie-e. Any cuniulative record of absent days 
which may be needed by the payroll clerk in computing amounts 
earned, etc., may be easily secured through small personnel cards 
on which only the absent days need be recorded. 

Pay Period. 

The school year consists of 190 school days. It is divided 
into nine school months of twenty teaching days and (me month 
of ten days. The ten-day month is always the first month of the 
school ,year. 

All employees of the board arc paid inonthly, the teachers 
being paid according to school months and all others by the cal- 
endar month. By such an arrangement payrolls must be pre- 
pared at various dates throughout the year, the school month 
having no direct relation to the calendar month. No advantage 
whatever can be seen in this arrangement. It fails to provide 
for definite dates of payment and causes additional work and 
annoyance. If the board were to demand monthly cost and ex- 
pense data, the present pay periods would work to a decided 
disadvantage for the reason that the teachers' payroll, covering 
time in two calendar months, would necessitate complicated and 
detailed analysis in order to ascertain the amounts chargeable to 
the operations of the respective months covered by each school 
month payroll. 

It is therefore recommended that the board amend its rules 
and regulations so that all payrolls shall be prepared on a cal- 
endar month basis. 

Fonn of Payroll. 

The only information shown (in the pres(>nt payroll form 
is — 

Pay period. 

Name of employee. 

Number of days' time to be deducted. 

Net amount payable. 

The following important information is lacking: 

1 — Salary rate by means of which computations may be 

audited. 

163 



2 — Gross amount of time worked which is also necessary 

in order to complete an audit. 
3 — Amount actually dedvictecl from the salary of a teacher 

to be applied to the teachers' retirement fund. 
4 — Percentage of retirement fund cieduction. 

For convenience in computing the amounts earned, the pay- 
roll clerk has prepared a key chart or roster of all employees, 
showing each name and salary rate authorized, retirement fund 
deduction, and the net amount payable, providing there be no 
special or unusual deductions. This roster, supplemented by the 
time records, is the basis on which the names, deductions and net 
amounts payable are copied on the payroll. A variation from 
the amounts shown on the key chart becomes necessary only if 
deductions are to be made. A payroll is the voucher for personal 
service and should therefore contain every evidence of correct- 
ness of the amounts shown thereon. 

In the appendix to this report a form of payroll which it is 
believed is well adapted for use by the Harrisburg school dis- 
trict is described in detail. It is recommended that this form 
supersede the one now in use. 

Preparation of Payrolls. 

The work of preparing payrolls has been delegated to one 
of the clerks attached to the secretary's office. The payrolls are 
in two main groups, viz.. those for teachers and those for jani- 
tors. 

No payroll whatever is prepared for the miscellaneous em- 
ployees who do not fall into either one of the above groups, such 
as the secretary, superintendent, tax collector, treasurer, repair- 
men, stenographers, clerks, etc. The secretary merely prepares 
warrants for their salaries, the amounts being computed mainly 
from observation. This method is to be condemned, particularly 
in view of the fact that no time records are maintained for 
these employees. These salary warrants simply stand on the re- 
cords as disbursements in no way supported by evidence of cor- 
rectness. Any audit attempted of these disbursements must nat- 

164 



urally be iueomplete. They should be inc-ludrd in the payroll 
system the same as other employees. 

Payrolls are prepared in duplicate, not by means of a earbon 
process, but by copying- full details to a duplicate stub payroll 
sheet. This means that every i)ayroll sheet must be written 
twice. Neither of these two copies ever leaves the secretary's 
office, nor is any special use whatever made of the stub copy. 
It is therefore very evident that the preparation of the stub copy 
is aji unnecessary duplication of work. It should be discon- 
tinued at onee. Tf a duplicate payroll be considered necessary, it 
should be made l)y carbon process. 

There is a general lack of certificates, both on the abstracts of 
time worked and on the payrolls, by whieh res[)onsibility for the 
correctness of the information shown thereon may be definitely 
located. Although the abstract is signed by the principal, his sig- 
nature is not preceded by any statement or certificate by which 
real responsibility may be established. The payroll calls for no 
certificates whatever either by the clerk pre])aring it, by the sec- 
retary, or by any member of the board. 

The proposed payroll procedure calls for ade(|uate certificates 
on both time reports and payrolls, not only by the persons hav- 
ing first-hand knowledge of the facts, but also by those employees 
having to do with the preparation of the payrolls aiul those held 
responsible for the disbursement of school funds. 

From the schedules of salary warrants, detailed ])ostings are 
made both by the secretary and treasurer to th(^ respective ac- 
counts in the appropriation ledgers. This duplication of p'ost- 
ing is the extent of the payroll accounting and is one of several 
unnecessary steps which should be eliminated. Aside from the 
preparation of the warrants, the names and amounts shown on 
the payrolls are written at least five times — r 

On the payroll. 

On the payroll stub. 

On the schedule of payroll wai-rants. 

In detailed postings to the appropriation ledger maintained 
by the treasurer. 

In detailed postings to the appropriation ledger main- 
tained by the secretary. 

165 



The board has over 300 employees, so that compliance with the 
above procedure necessarily means a vast amount of work, most 
of which is believed to be a needless duplication. The proposed 
payroll procedure would reduce this work to the preparation of 
one single detailed record, viz., the payroll. The elimination of 
four of the above steps would be accomplished as follows: 

The payroll stub would be eliminated and a copy of the pay- 
roll still be secured by using a sheet of carbon paper. 

The schedule of payroll warrants would be superseded by a 
copy of the payroll itself. 

The appropriation ledger maintained bj^ the treasurer is be- 
lieved to be an entirely unnecessary duplication of Avork 
and its discontinuance is recommended. 

The postings to the appropriation ledger, which should still 
be maintained by the secretary, would be only in monthly 
totals instead of each pa.yroll warrant. 

The distribution of payrolls according to expense accounts, 
appropriations and funds would be shown by entries of the total 
amouunt of the payroll in the register of accounts payable and 
register of receipts and disbursements, respectively. By apply- 
ing the proposed in lieu of the present procedure, it is believed 
that the work of preparing and accounting of payrolls would be 
reduced 50 per cent. 

Methods of Determining Betirement Fund Deductions Faidty. 

According to the rules and regulations of the school dis- 
trict, all teachers are compelled to contribute to the teachers' re- 
tirement fund a certain percentage of the salary earned, this 
amount not to exceed $50 in any one year. The board of school 
directors is also required to appropriate annually to the retire- 
ment fund an amount equal to that contributed by all teachers. 
Deductions from the teachers' salaries are made by means of the 
payroll. However, neither the individual deductions nor the 
total amount of such deductions are shown on the payroll, this 
document recording only the net amounts earned. Hence, hi 
order to learn the amounts which had been contributed during 
any pay period, it would be necessary to refer to the payroll key 

1fi6 



list or roster already mentioned. This ke}' list is merely a mem- 
orandum list, showing the names and salary rates of all teach- 
ers, together with the amounts of their respective retirement 
fund deductions, providing full time has been earnea. The 
amounts shown in the "■retirement fund deduction" column re- 
main the same throughout the year, no changes being made on 
account of absence or reduction of the regular monthly salary. 
It is from the total of this column that the amount of the war- 
rant to be drawn in favor of the retirement fund is ascertained. 
This column, although it may show the amount of the retire- 
ment fund warrant for the current montli, cannot be used to 
verify or substantiate the warrants drawn during previous 
months, for the reason that changes are constantly occurring in 
the personnel list. It certainly should be possible to verify from 
the permanent records of the school district every cent which has 
been contributed by each teacher, as well as the total amount 
contributed by all, especially as this latter amount determines 
liow much shall be contributed or appropriated by the board. 

The method employed in ascertaining the amount of the 
monthly warrant to be drawn in favor of the retirement fund is 
also faulty in that the same retirement fund deduction is shown 
on the key list or chart opposite the name of each teacher 
throughout the year, regardless of the actual amount of salars' 
earned or paid. 

The proposed payroll procedure with respect to retirement 
fund deductions requires that the payroll show the gross amount 
earned as well as the respective rate of retirement fund deduc- 
tion for each employee. With these two factors at hand the ex- 
act retirement fund deduction may be computed and be shown 
in the special column provided for that purpose. The gross 
amount earned, less deductions, will show the net amount pay- 
able, while the total of the retirement fund column for all pay- 
rolls will represent the true amount actually contributed. 

Need of Annual Salary Rate for Teacher.<i. 

The rules and regulations of the school district make nec- 
essary an unwarranted distinction in the method of computing 
the amounts earned by teachers in the elementary schools and 

167 



those earned by all other classes of teachers, although they all are 
required to teach the same number of days each school year. 
According to these rules the annual salaries earned by the high 
school and special teachers "shall be divided into ten eciual pay- 
ments, the payments to be made at the end of each school 
month." The elementary teachers, however, are paid according 
to the actual time worked. In other words, although all teach- 
ers are employed for nine and a-half school months, the high 
sciiool and six'cial teachers are ])aid on a ten months' basis. The 
injustice of such a distinction is illustrated in the first school 
month of the year, consisting of ten working days. For this first 
month an ekniientary teacher whose salary is on the basis of $800 
per year would receive $42.10. while a high school or special 
teacher whose salary might be the same would receive $80. Sim- 
ilarly, a special teacher appointed after the beginning of the 
school year at the annual salary of $1,000 who worked three days 
in a school month would be paid $5.16 per day, or at the rate of 
$103.20 per school month, but if this same teacher worked the 
entire montli she would receive but $100. Such complications in 
computing amounts eariied naturally cause an increased amount 
of clerical work and cause much confusion and annoyance to all 
who are aff(H'ted by these unequal rulings. 

It is therefore reconunended that all employees be appointed 
and paid according to a uniform fixed aiuuial salary rate.* 

Dishiirsf)ii( lit fDid Accounting of Payrolls. 

When tile payrolls have been completed, the secretary pre- 
pares and signs a separate pay warrant for each employee. The 
warrants are then listed on a schedule, and after having been 
signed by the president of the board are sent to the treasurer to- 
gether with a copy of the schedule. The treasurer retains the 
.schedule, but returns the warrants, after having countersigned 
each one by means of a rubber stamp. The teachers are then re- 
quested to call at the secretary's office for their respective checks 
and to aeknowledge receipt on the face of the payroll. As a 
matter of fact, not over 85 per cent, of such receipts are actually 
secured, for the reason that many checks are delivered by proxy. 

*Since the survey was .started, the board has substantially adopted 
the above recommendation. 

168 



The treasurer should be the disburser of school funds, and in 
such capacity should see that all checks are properly delivered. 
So long as the secretary continues to perform such functions, a 
situation exists whereby one official ha« charge of the prepara- 
tion and audit of payrolls, the preparation of warrants, and the 
])ayni('nt of employees. From an accounting and auditing view- 
point it is most unsound. 

It is therefore reconnueuded that all pay eliccks be delivered 
to the employees by the treasurer. It is fully as easy for the 
employees to call at the treasurer's office as at the office of the 
secretary, even if the treasurer should not adopt a more approved 
method of delivering the pay checks at the various schools. 

The logical method of disbursing payrolls would be for the 
secretary to prepare one warrant for the total of all payrolls for 
a calendar month. This warrant, which should be made payable 
to the treasurer as paymaster, should be deposited in a separate 
checking account, against which individual paymasters' checks 
would be drawn. Such account would then be in reality a re- 
st-rve to care for the payrolls; the balance thereof w^ould at all 
times represent the outstanding pay checks. Aside from the pro- 
per allocation of functions secured by this proposed method, a 
great saving of time would be made in the maintenance of the 
books of account. The proposed method would necessitate the 
signing by three officials of but one monthly warrant instead of 
over three hundred, and would decrease proportionately the 
number of accounting transactions which must be recorded in 
the general books of account. The large amount of time which 
would be saved by the adoption of this method must hr evident. 

School Debt 

Tonporar]! Loans. 

The attached table and chart are presented for the pur- 
pose of showing the increase in the expenditures of the school 
district for the last twenty years, and particularly for the pur- 
pose of explaining the conditions which led to the practice of 
negotiating temporary loans each year in order to meet the oper- 
ating expenses. 

169 



It will be noticed that prior to the year 1911, the amount of 
the annual receipts was more than sufficient to meet expendi- 
tures. During the year 1911, however, the school code changed 
the beginning of the fiscal year from June 1, to July 1. This 
resulted in the fiscal year 1911 having thirteen instead of twelve 
months. No provision had been made in the budget of that year 
to meet the additional month's expenses, with the natural result 
that the expenditures exceeded the receipts. The amount of 
this deficiency was $57,342.81. To meet this deficiency the board 
negotiated temporary loans drawing interest at the rate of 5 per 
cent. However, no provisions were made in subsequent budgets 
to take up this deficiency, with the result that loans have been 
necessary each year in order to meet the expenses. The total 
amount of interest paid on these loans for the past five years is 
$6,283.00. "With the exception of the interest paid on the orig- 
inal note, this expenditure seems to have been unnecessary. 

The present school board is to be commended for its action in 
including in the tax rate for the year 1916-17, an additional mill 
for the purpose of caring for approximately one-half of the 
amount of the deficiency. This step is liable to draw much un- 
warranted criticism, but it should result in an ultimate decrease 
of expense by at least the amount of interest. 

The practice of issuing notes in order to meet current operat- 
ing expenses is universally admitted to be wrong. The board 
should continue its efforts to reduce the deficiency, which -would 
have been taken care of in 1912, by including in next year's tax 
rate a sufficient millage to cover the balance and thereby place 
the school district upon a sound financial basis. Thereafter the 
current operating expenses should properly be paid from the 
current receipts without the additional millage (except, of 
course, for increased school population and school functions). 



170 



Comparative Statement of the Ainnial Receipts and Expendi- 
tures of the Harrisburg ScJwol District for the 
Past Twenty Years. 






W 



1898 $24,258,120 6 $201,911.38 $195,431.76 "$ $ 

1899 24,502,709 (5 187,718.37 184,420.73 

1900 24,241,690 6 187,227.52 184,661.83 

1901 25,538,741 6 224,679.71 216,417.89 

1902 26,712,425 6 200,619.64 193,123.82 

1903 28,061,538 6 294,407.51 284,673.64 

1904 30,256,750 6 275,496.19 270,834.43 

1905 31,700,000 7 327,086.99 326,472.16 

1906 32,094,465 7 397,842.29 371,571.25 

1907 40,000,000 614 334,826.59 315,012.32 

1908 40,000,000 6V4 388,920.29 322,704.07 

1909 41,000,000 6^4 436,473.34 356,145.49 

1910 46,000,000 61/4 420,351.49 324,938.57 

1911 46,750,000 714 344,577.82 401,920.66 

1912 46,750,000 T^A 400,277.79 502,719.26 83,895.84 1.104.16 

1913 49,000,000 8 451,986.04 538,136.08 95,800.00 1,661.01 

1914 49,450,000 81/2 478,323.36 546,802.31 79,500.00 745.00 

1915 49,750,000 8i/> 486,122.56 562,482.01 88,000.00 1.187.33 

1916 50,500,000 SV-, 492,805.61 606,218.38 115,000.00 1,585.50 

1917 10 



Bonded Indebtedness. 

The gross amount of the boiided indebtedness of the 
sehool district is $984,000. Of this amount, $147,000 is covered 
by long-term bonds. Since 1903 a iiiodifieation of the old law 
provided that "all bonds issued by any sehool district .... 
shall be made payable and become due at stated periods, not ex- 
ceeding thirty years after the date thereof . . . . " The intent 
of this law was undoubtedly that all bonds issued after the date 
specified should be straight serial bonds, whereby an equal 
anunmt would become due and payable each year. The sehool 
district has complied with the general expression of the law by 
issuing what are called "thirty -year serial bonds." However, 
the peculiar manner in which the so-called serial ])onds were 
issued has made it necessary to provide special sinkiTisr fnnds 
for each issue. 

171 



This situation was brought about by the fact that the bonds 
frcquenth' do not begin to be redeemable until five years after 
date of issue, and also by the fact that the number and value of 
the bonds redeemable each year are not uniform. To illustrate : 
The issue of January, 1915, for $99,000 provides that no bonds 
shall fall due until 1920, at which time $16,000 may be redeemed. 
For each succeeding year until 1945 $3,000 fall due. In the last 
year $11,000 must be redeemed. Similarly, the issue of April. 
1912 for $78,000 provides that $13,000 are redeemable in 1917 ; 
$2,000 annually for ten years, and $3,000 for the last fifteen 
years. Under this system, which calls for a fixed appropriation 
to the sinking fund each year, it naturally becomes necessary for 
a separate sinking fund to be carried for the entire life of the 
bond issue, even though the annual installment be accurately 
computed and properly transferred to the respective sinking 
fund each year. Aside from complying with the wishes of pros- 
pective purchasers of the bonds, there is no advantage to be ob- 
tained by varying from the method of establishing uniform an- 
imal redemptions. 

It is therefore recommended that future bond issues be ar- 
ranged in such denominations and sold under such conditions 
that after the first installment of bonds has been redeemea the 
same amoimt will fall due each year. Any adjustments neces- 
sary in order to provide for uniform annual redemptions and 
installments should be covered in the first installments which fall 
due. Such a method would obviate the necessity of maintaining 
sinking funds for serial issues after the first installment of bonds 
has been redeemed. In case the first bonds of a series would 
be made payable one year after issue, there would be no need 
whatever of a sinking fund. 

When the bonds have been paid and cancelled, they are sent 
to the secretary, who destroys them. Similar methods are used 
in connection with interest coupons. Cancelled bonds and inter- 
est coupons are equivalent to cancelled checks and should be re- 
tained to support the disbursement of funds. A convenient 
method of preserving interest coupons is to maintain a special 
blank-book in which spaces are provided for the pasting of the 
coupons for each bond. By means of such a book the blank 

172 



spaces always represent the coupons which are cine Jtnd jifiyablc, 
but which have not been presented for payment. 

Sinking Funds. 

The following table shows the sinking fund cash as of 
February ]. 1917, as per the records of the secretary and the 
treasurer's monthly report: 

Bond Issue. Treasurer's Report. Secretary's Records. 

January 1 , 1901 .$1 6.065 . 00 $1 7,665 . 00 

April 1, 1903 9.573.62 13.006.95 

April 1, 1 905 3,1 66 . 63 5.999 . 96 

January 1 , 1 908 ) 6.066 . 64 

October 1. 1908 \ • 5.000 00 

October 1 . 1 909 5.066 . 62 4.933 . 28 

April 1, 1910 300.00 11.100.00 

April 1, 1911 2.400.00 

April 1. 1912 10.400.00 13.000.00 

April 1. 1914, 6.000.00 5.100.00 

June 1, 1915 3.300.00 6.600.00 

General Fund 16.120.00 

Not named (Union Trust Co.), 3.668.77 



$83,793.95" $90,871 .83 
*Report shows $83,993.9.5— an error of .$200. 

From this table it can be seen that the amounts reported as 
belonging to the various sinking funds vary ccmsiderably in 
every instance; also that thei-c is a total net difference of $7.- 
077.88. These differences are due to three main causes — 

1 — The budget a])i)r()priation to sinking funds for the year 
1916-1917 amounting to $45.7(i().65. although disti'ib- 
uted according to the respecth^e sinking funds by the 
secretary, was not so allocated by the ti'casurcr but was 
credited in total to the so-called general siidving fund. 

2 — A few investments belonging to certain siiddng funds were 

transfei-red to other fuiuls for ca.sh. Such transfers were 

made on the records of the secretary, but wei-e ignored 

by the treasurer. Tliis causes a largi^ difference owiiu; 

173 



to the fact that the treasurer does not keep any record 
of investments. 
3 — During- the present fiscal year certain long term bonds fell 
due, but because of insufficient balances in the respective 
sinking funds redemption was made in part from the 
general operating fund. The amount of this warrant 
drawn on the general fund was included in the general 
sinking fund by the treasurer, but shown merely as a 
deficit by the secretary. 
The need for a complete new installation of adequate sinking 
fund records is apparent. 

The board has adopted a policy whereby all intei'est earned by 
any of the sinking funds, instead of being considered as an in- 
come of such fund, reverts to the general operating fund. Hence 
all cash actually in the sinking funds was originally received 
from budget approjjriations. This method, while unusual, is not 
unsound so long as the amount of the annual installment ac- 
tually appropriated is sufficient to retire the bonds at maturity. 
Moreover, since it will not be long before the long term bonds 
will have been fully redeemed and particularly since serial 
bonds, which must be issued from now on, require no sinking 
fund, no recommendations are made for a change in the present 
procedure of allowing sinking fund interest to revert to and re- 
main in the general operating fund. 

Of late years it has l)eeii customary to contribute annually to 
the sinking funds of the long term bond issues an amount equal 
to at least 4 per cent, of the original issue. This method has 
not been followed throughout the life of the issue, with the re- 
sult that when certain bonds recently fell due there was insuf- 
ficient cash in the respective sinking funds to meet the amount 
of the redtmiptions. To meet this deficiency all of the available 
sinking funds for all bond issues of dates prior to 1901 were 
used. Tt was even necessary to borrow a considerable amount 
from the general operating fund. For this reason there is no 
cash in the sinking funds for bonds amounting to $115,000 
which will fall due during the years 1921 and 1922. For the 
same reason there now exists in these sinking funds a deficit 
of $28,677.89. representing the cash borrowed from the general 
fund. 

174 



Two statements are included herein which j)urp()rt to show 
the outstanding bonds, together with the status of each respec- 
tive sinking fund. Assuming that the data which was furnished 
is correct, computations have been made and included in the 
statements to show the surplus, deficit, amounts to be contrib- 
uted, etc. These statements reveal the following interesting 
facts, which should be carefully considered by the board: 

In every case the amounts of the annua-l installment to the 
sinking fund of the serial bond issue have been correctly com- 
puted. These amounts, if appropriated, will be sufficient to re- 
tire all bonds at maturity. Reference to the statement shows 
that in two instances the amounts held are more than sufficient, 
while in one case there is a small deficit. These differences are 
explained as follows: The surplus of $2,040.23 which appears in 
the sinking fund for the issue of April, 1903. resulted from the 
fact that two bonds which were not legally dm- for several years 
were as a matter of accommodation to the ]MU'chaser redeemed 
long before the date of maturity. These redemptions ap])ar- 
ently were made from general operating fund cash, no subse- 
quent adjustment having been made. Although this amount 
should be repaid to the general fund, still it is believed that it 
is permissible to apply this surplus to the d(>ficit which exists 
in other sinking funds. In 1907 the board contemplated a bond 
issue of $49,000 to be dated January 1, 1907, and in the budget 
provided as the first installment the sura of $1,666.66. The con- 
templated issue was not made until January 1. 190S and the 
amount was increased to $69,000. For tbat year a further ap- 
propriation of $2,933.34 was made. Since that date the annual 
appropriation has been $2,300. By this arrangement the ap- 
propriation to this sinking fund began one year before the bonds 
were issued. Consequently there is a surplus of $2,300 in this 
fund. Other bonds to the amount of $42,000 were issued i)i the 
same year. However, the first installment wa,s not paid until 
one year later. Hence there will be a deficit in this sinking fund 
of $1,633.40. 

The statement of the long term bonds sbows for comparative 
purposes the amount which sh(mld be in the sinking funds if the 
cash had been invested nt the rate of 3 prv ci'iil.. providing the 

175 



resulting interest had been allowed to remain as an income of 
the sinking fund, also the amount which should be available if 4 
per cent, of the original bond issue had been contributed an- 
nually. The latter method is wrong for the reason that m no 
case would the amount accumulated be the exact sum needed for 
redemption purposes. It would either result in a surplus or a 
deficit, either one of which would cause complications. For the 
purpose of showing the actual deficit more correctly, it has been 
figured on a 3 per cent, actuarial basis. It thus appears that the 
amount of money which should have been in all sinking funds 
for the long term bonds February ], 1917 is $113,454.81. Against 
this amount there was actually on hand $25,665. leaving a de- 
ficit of $87,789.81. This amount must be available in the years 
1921 and 1922. It is perhaps too large to warrant an attempt 
to cover it .in the tax levy. Such a step would mean that for 
each of the next four years approximately $26,000 would have 
to be appropriated simply to care for the long term bonds. If 
this is not done, an alternative would be to contribute during 
the few remaining years the customary 4 per cent, of the original 
issue and then arrange to secure the balance by the issuance of 
special refunding bonds. 

A large sum of money has recently been obtained from the sale 
of real estate originally bought from the proceeds of bond issues. 
In order to decrease the amount of this refunding bond it may 
be advisable to allow this sum to apply in the amount of the 
sinking fund deficit. 

The average yearly balances in the serial bond sinking funds 
are too small to warrant their being invested in bonds or other 
long term securities. The secretary's records, however, show 
that at the present time there is in the sinking fund for the 
bond issue of 1901 a balance of $25,665. Of this amount only 
$8,000 has been invested; the balance therefore is only earning- 
2 per cent. Investments in city or local industrial bonds should 
draw at least 4 per cent, interest, and there is no apparent reason 
why large sinking fund balances which will not be needed for a 
period of years should be kept on deposit earning only 2 per 
cent. The sinking funds of the non-serial bond issues ought to 
be made to practically double the present earnings. 

176 



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178 



Auditing 

The school law status that thf linaiiees of eveiy school district 
of the second class shall l)e properly audited by two competent 
persons to be appointed by the court of common pleas of the 
county ill which the disti'ict is located. Every year since this 
law went into effect the court has appointed the same two. men. 

In complying with that part of the law which states that "two 
competent persons'' shall be appointed to make the annual audit, 
the court has selected a salesman and a retired railway clerk. 
While satisfaction has been expressed in many ([uarters as to the 
thoroughness of this audit, still it cannot be expected that men 
not specially trained in accounting and auditing are best ([nali- 
fied to render such service. While they may be thoroughly con- 
scientious in their work and while they may detect many errors 
and fully carry out the expression of the law, still it is true that 
untrained men are not the best auditors. It is therefore sug- 
gested that the court be asked to appoint as school auditors men 
specially trained in that line of work. They should be in a posi- 
tion to render helpful c<mstructive suggestions and recommenda- 
tions. 

The procedure now followed l)y the board and its connuittees 
in concerning itself Avith every small purchase and payment is 
criticised elsewhere in this rei)(H-t. and recommendations are 
made for the delegation of responsibility to other executives, 
thereby leaving the board free to confine its efforts to matters 
of legislation — to the passing of judgment upon matters of pol- 
icy, etc. If such recommendations are adopted, the current audit 
now maintained by the board would be eliminated. As a mat- 
ter of fact, the audit and approval of the boai-d and its commit- 
tees are based mainly on the secretary's approval. As this official 
is in direct touch with all of the activities of the distrK't. his 
approval is of value and should be continued. By centering re- 
sponsibility and by definitely stating and limiting this responsi- 
bility, there will be less need than ever of board approval. It is 
desirable that the secretary representing the board incorpcM-ate 
a certificate of audit in his approval of documents. 

179 



V. 

TEACHERS' RETIREMENT FUND 

Estahlishnieiit and Manage incnl of the Fund. 

In the year ]908 Harrisburg availed itself of the state law 
of 1907, which authorized any city in Pennsjdvania to establish 
a retirement fund. Practically all public school teachers, about 
235 in number, have become members of the fund which actually 
started operaticms on September 1, 1908. The fund is managed 
by a retirement board consisting of five persons, two of whom 
are members of the board of school directors; two others are 
elected by the teachers, and the fifth is the president of the board 
of school directors. An annuity of half of the final salary (min- 
imum $300, maximum $800) is paid on retirement after reaching 
the age of sixty and completing thirty years of service (twenty 
years of which must have been passed in the schools of Harris- 
burg). Proportional benefits are paid at disability. 

Contributions and Method of Financing. 

The teachers contribute to the fund 2 per cent, of their 
salaries if they have taught ten j^ears or less, and 3 per cent, if 
they have taught more than ten years. No teacher contributes 
annually more than $50. The city contributes, by means of an- 
nual appropriations, an amount equal to that contributed by 
the teachers. From this income the annual pension payments 
are made. The amounts which have not been expended during 
the year remain in the fund as a reserve until they too shall be 
needed for the paymeut of pensions. 

Financial Operations of the First Seven Years. 

During the first seven years the fund accumulated a bal- 
ance of $50,000. The rate at which the amount was accnmu- 
lated, however, decreased rapidly because the number of annui- 
tants and the amount of annual disbursements during that per- 

180 



iod iucreased. Each year a greater proportion of the income 
was expended and a smaller proportion was set aside, as shown 
in the following- table. 







Percentage of 


Year 


Number of Annuitants 


Income Expended 


1908 


7 


21 


1909 


12 


42 


1910 


15 


43 


1911 


17 


46 


1912 


18 


50 


1913 


19 


49 


1914 


21 


49 


1915 


24 


52 



The Fiiiaiicial Prospects of the Fuiul. 

Tlie disbursements of the fund will continue to increase 
more rapidly than the income. In a few years a point will be 
reached when 100 per cent, of the income, not 21 per cent, as in 
1908, or 52 per cent, as in 1915, will be expended and when, in 
addition, the reserve will have to be drawn upon until the fund 
is altogether depleted. The main cause of the annual increase 
of disbursements is the fact that each year a greater number of 
annuities is added to the retirement list on account of new re- 
tirements than the number terminated on account of death. 

The managers of the fund are gravely mistaken when they 
believe that the niuuber of deaths among annuitants Avill soon 
offset the number of new retirements. It usually takes a fund 
from sixty to seventy years before the balance is reached. The 
contributions of the teachers and the school district to the Ilar- 
risburg fund, however, are so inadequate (about 5 per cent, of 
the payroll) that the fund Avould never survive as long as sixty 
or seventy years — it will be depleted within th(^ twenty years 
unless it is actuarially reorganized on an adecniatc l)asis. 

Can the Fund Continue a Separate Existence? 

But even on an actuarial basis it may prove difficult to 
make the fund financially stable because the membership of the 
fund may not be large enough (only about 300 members) to 

181 



safeguard it against wide accidental variations in the mortality 
rate among the members. Another and perhaps a better Tneans 
to save the beneficiaries from disappointment Avould present 
itself if the bill now under consideration (Senate No. 273) pro- 
viding for the establishment of a state-wide sound retirement 
fund in Pennsylvania would become a law. This bill provides 
that any already existing local fund in the state may join the 
state fimd if two-thirds of the teachers in the particular city 
\ipte in . favor of the merger. 



182 



APPENDIX "A" 

1917-1918. 

Estimated Receipts. 

Real Estate Tax 10 mills, $518,000.00 

State Appropriaton, 45,000.00 

Personal Taxes, 7,000.00 

Interest. 3,500.00 

Tuition, 2,000.00 



$575,500.00 



Estimated Expenditures. 

Superintendent, 

Secretary • 

Treasurer, 

Tax Collector 

Clerks, 

Teachers— This Year, $293,000.00 

Increase, 16,231.75 

New Teachers 5,000.00 

Teach, extra time, 3,000.00 

Janitors, 

State Tax on Bonds, 

Interest on Bonds, 

Sinking Funds— General $10,000.00 

1901 1,600.00 

1903 3,433.33 

1905, . 2,833 . 33 

Jan. 1908, 2,300.00 

Oct. 1908 1,633.33 

1909 1,866.66 

1910, 10,300.00 

1911, 2,400.00 

183 



$3,500.00 
2,000.00 
1,300.00 
3,400.00 
3,660.00 



312,231.75 

31,000.00 

4,000.00 

37.450.00 



1912, $2,600.00 

1914, 3,000.00 

1915, . 3,300.00 

$45,266. 6e5 

Buildings, 30,000.00 

Technical High School, 7,000.00 

Text Books, 13,000.00 

Supplies and Fuel, 25,000 . 00 

Printing and Advertising, 2,000.00 

Teachers' Retirement Appropriation, 7,000.00 

Medical Inspection 2,500 . 00 

Public Library, 5,000.00 

Open Air Schools, 1,800.00 

Domestic Arts, 800.00 

Dental Clinic 500.00 

Contingent, 5,000 . 00 

$548,408.40 

Estimated Receipts $575,500.00 

Estimated Expenditures, 548,406 . 40 



$27,091.60 



Stat erne )it of Condition at End of Year. 

Estimated Real Estate Taxes, $515,000.00 

Received to March 1, 1917, 474,593.52 



Outstanding 40,406.48 

Cash in Bank, March 1, 1917 iOO,000.00 

Estimated Receipts to July 1. 1917. 25,000.00 



$125,000.00 



Estimated Expenditures — March 1 to July 1, 1917; 

Teachers' Wages $118,249.18 

Janitors' Wages 9,372.96 

Bills 12,000.00 

Salaries, 6,828.24 

184 



State Tax $3,600.00 

Interest. 16,000.00 

Teachers' Retirement,. -1,061.43 

Public Library, 2,084.04 

172,195.85 

Estimated Deficit 47.195. 85 

Cr. 

Deficit Last Year, ^\ 15,000 . 00 

Paid on Bonds No Sinking Fund 23,677 . 88 



$138,677.88 
Estimated Surplus of Receipts : 

Over Expenditures, .. . $41,233.35 

Sale of Church 21.000.00 

Sale of 1/2 Reily plot, 41,000.00 

103,233.35 

Estimated Deficit .$35.444. 53 

Debt Statement. 

Indebtedness. July 1, 1916, $1,117,100.00 

Bonds Redeemed to February 1, 1917, 124,500.00 

$992,600.00 
Sinking Funds 102.871 . 83 

Net Bonded Debt $889,728. 17 



Assessed Valuation, $51,865,638.00 

Borrowing Capacity, 1 ,037,312 . 76 

Net Bonded Debt 889,728. 17 

Net Borrowing Capacity, 147,584.59 

Next Year's Sinking Fund 45,266.65 

Total Borrowing Capacity $192.851 . 24 

185 



APPENDIX "B" 

DESCRIPTION OF RECORDS AND PROCEDURE RELAT- 
ING TO CENTRAL ACCOUNTING SYSTEM. 

In the following pages are briefly described the records and 
procedure which are recommended for adoption by the board 
in connection with the proposed accounting system. The sys- 
tem proposed is a concise one and contains no record or docu- 
ment which can be dispensed with if an effective control is to be 
maintained over the accounts and finances of the board. It is a 
system which has already been installed and is in successful 
operation in various city departments throughout the country. 
The system is fully described, not with the expectation that it 
will cover each point of discussion or meet every feature of the 
local conditions, but in the belief that it may be used as the 
guide for making a much needed reorganization of the account- 
ing forms and methods now in use. 

The system is based on the use of the following documents: 

Requisitions. 
Stores invoices. 
Purchase orders. 
Payrolls. 
Invoice-vouchers. 
Warrant-checks. 
Registered bills. 

All of the above documents are registered originally in one 
or more of the following registers: 

Register of stores invoices. 
Register of orders. 
Register of accounts payable. 
Register of warrant-checks. 
Register of accounts receivable. 
Register of receipts. 

186 



From the original documents and registers the following sub- 
sidiary records are Avritten up : 

Appropriation ledger. 

Claimants' ledger. 

Expense ledger. 

Property and equipment ledger. 

Cash book. 

The totals of the registers at the end of each month are posted 
through the general journal to the general ledger of the depart- 
ment. From the general ledger and subsidiary ledgers the fol- 
lowing financial statements are prepared: 

Balance sheet. 

Statement of revenues and expenses. 

Fund statement. 

Statements of receipts and disbursements. 

Statement of appropriation balances. 

A detailed description of the various forms of records and 
the procedure relating to their use follows. 

Requisition. 

A standard form of requisition on the purchasing agent 
should be provided. 

Requisitions should be prepared in duplicate by carbon pro- 
cess in the various divisions or institutions of the department. 
They should contain the following information : 

Requisition series number. 

Name of bureau, division, etc.. oi-igiiiating. 

Date. 

Purpose for which re(iuired. 

Name and title of person to whom delivery is to be made. 

Point of delivery. 

Date on or before which delivery is required. 

Quantity and unit. 

Description of requirements. 

Estimated cost. 

187 



Certificate of necessity by originatiug bureau head, etc. 
Names and addresses of possible vendors. 
Code number of appropriation chargeable. 

After being certified in the originating division, requisitions 
should be submitted to the responsible official for approval. 

If the items requisitioned are to be purchased and if sufficient 
funds are available, the approved requisition should then be 
sent to the purchasing agent, who should proceed to obtain the 
necessary bids by the use of official quotation sheets or other- 
wise, prior to issuing a purchase order. When the order is 
issued the requisition number will be shown on the order and a 
memorandum of the order number will be inserted on the re- 
quisition, together with the date the order was issued and the 
name of the vendor. 

If the items requisitioned are to be supplied from the store- 
house, the approved requisition should be sent to the store- 
keeper for action. Cross reference of document numbers should 
be shown both on the requisition and on the resulting stores 
invoice. 

I'urchase Orders. 

All purchase orders should originate in the purchasing 
agent's office after quotations have been obtained and the ven- 
dor from whom the goods are to be purchased has been decided 
upon. 

Each order should be prc^pared in quadruplicate by carbon 
process, a different color of paper being used for each of the 
four copies. The orders should be made up in pads by the print- 
ers before delivery and should be punched so that they may be 
used in loose-leaf binders if desired. 

The inforination to be shown on the purchase order is as fol- 
lows : 

Order number. 

Name and address of vendor. 

Name of consignee. 

Point of delivery. 

Date of order. 

188 



Code number of appropriation chargeable. 

Number of requisition upon which order originated. 

Quantity and unit. 

Description. 

Price per unit. 

Amount. 

Certificate of purchasing agent. 

Certificate of departmental accounting officer. 

After the orders are prepared, the original, duplicate and 
triplicate copies should be sent to the accounting officer, while 
the quadruplicate copy should be retained by the purchasing 
agent. 

The reason for requiring that all purchase orders be sent to 
the accounting officer is to enable this official to encumber the 
estimated amount thereof on the appropriation ledger so that the 
department may know at all times the amounts of its coiitingent 
liabilities and that overencumbrances of appropriations may be 
prevented. 

To insure the transmission of all orders to the accounting 
officer for registration, a note should be printed on the face of 
each order stating that no order is valid until signed by the ac- 
counting officer. 

After encumbrance on the appropriation ledger the original 
copy of the order should be transmitted to the vendor, the dupli- 
cate should be retained by the accounting office for registration, 
and the triplicate should be returned to the purchasing agent. 
T^pon receipt of triplicate copy the purchasing agent may trans- 
mit the quadruplicate copy of order to the person to whom de- 
livery is to be made. 

Register of Orders. 

In order to control the incurrence of liabilities, provision 
should be made for the registration of each order before it is 
issued. The department becomes liable as soon as an order is 
issued, and the respective appropriations therefore should be 
encumbered accordingly, otherwise effective accounting control 
cannot be maintained. The information to be recorded on the 
register of orders is as follows: 

189 



Ovder number. 

Date of issuance of order. 

Requisition number. 

Name of vendor. 

Nature of order. 

Code number of appropriation chargeable. 

Amount. 

Invoice number. 

Remarks. 

The number of the invoice resulting from the issuance of an 
order cannot be entered until delivery is made. 

If the number of appropriation accounts is not too large, a 
distribution of orders, according to appropriations, may be con- 
veniently secured by means of a columnar insert sheet or by 
providing sufficient distribution columns in the register. The 
sole purpose of such an arrangement would be to avoid the ne- 
cessity of posting each order to the appropriation ledger, using 
monthh^ total instead. 

It should be possible for the department to Ivuow at all times 
not only the amount of expenditures which have l)een made to 
liquidate orders filled, but also the amount of orders outstand- 
ing. This record will provide the means for ascertaining this in- 
formation. 

As soon as a purchase order is received by the accounting of- 
fices it should be registered — a basis will thus be afforded for es- 
tablishing the necessary reserves to show liabilities incurred by 
the department on contracts and open-market orders. 

Appropriatio)i Ledger. 

This ledger should be loose-leaf in form and should contain a 
separate sheet or sheets for each appropriation. 

In respect to each account, the following information should 
be shown at the top of each sheet : 

Department, bureau, division, office, function or sub- 
function. 
Date of original appropriation. 
Title of appropriation. 

190 



Code number of appropriation. 

Amount of original appropriation. 

Particulars of modification of original appropriation 

Transfers to or from other appropriations. 

Revenues creditable to appropriation. 

Balance of appropriation after modification. 

In the body of the ledger sheet the following iuformation will 
be provided for in columnar form : 

Date. 

Name of vendor. 

Description. 

Invoice number. 

Order number. 

Amomit of invoice. 

Unexpended balance. 

Reserve for coulj-acts and open-market orders. 

Date. 

Contract or oi'dei- iiuml)er. 

Amount of contract or order. 

Amount of orders cleared. 
Unemcumbered lialance. 

Before purehase ord'Ts are issm-d or contracts ai-e certified, 
the necessary entries should be made in the coliunns provided 
for that purpose under the heading of "reserve for contracts 
and open-market or-dei's." As invoices are received and regis- 
tered, entries should be made in the i-espective coluuins. 

If it be found possible to provide for a distril)uti()n of tlie 
orders placed and liquidated, as suggested inider the heading 
"order register," it might not bi' necessary to post each separ- 
ate order to the appropriation ledgers, excepting at the end of 
the year or when appropriation balances are getting low. 

Invoices received for supplies delivered or services rendered 
represent a definite liability. As orders or contracts are filled, 
invoices should be submitted covering the amount of supplies, 
etc.. delivered or services rendered. Such invoices when 
charged to an account in the a|ipi-oi>i'iati(m ledger therefore can- 

191 



eel the encumbrances already entered in the "amount of order 
or contract" column. As invoices liquidating orders or contracts 
are entered, the amount liquidated should be entered in the col- 
umn headed "amount of orders cleared." 

Receipts \vhich are in the nature of refunds of amounts pre- 
viously charged against appropriations should be entered in red 
ink in the column headed "amount of invoice." 

For various reasons, such as in the case of partial shipments, 
invoices may be received for amounts which differ from the orig- 
inal amount of the order or contract. In such cases the amount 
to be inserted in the "orders cleared" column should be the ex- 
act amount of order previously charged, the unfilled balance of 
the order being re-entered in the ' ' amount of contracts or orders 
registered" column. The amount of cancellations of orders 
should be entered in the "orders cleared" column. 

Postings to this ledger should be made from the registered 
copies of orders, contracts and invoice-vouchers. 

If such procedure is followed it will be possible at any time 
to ascertain the condition of each appropriation, not only as to 
the balance unexpended, but also as to the unencumbered bal- 
ance — i. p., the balance of the appropriation which would remain 
if all orders and contracts were filled completely. 

Pmjrolls. 

A standard payroll form should be designated and in- 
stalled. This form should show the following information : 

Name of the department, bureau, division, institution, etc. 
Period covered by payroll. 
Name (of each employee). 
Title. 

Rate of pay. 
Time worked. 
Gross amount earned. 
Deductions. * 
Net amount payable. 

Distribution of amount payable according to appropria- 
tions chargeable. 

192 



Instead of attempting to make the payroll serve as a posting- 
medium for eost or expense accounting purposes, time reports 
should be submitted by everj'^ employee for the period corres- 
ponding to that covered by the payroll which would show the 
distribution of the time of each employee according to the stand- 
ard classification of expenditures. Postings should hv made 
from these time reports to the various accounts in the expense 
ledger in order that the ainounts chargeable may be distributed 
accurately to the respective organization units and functions 
or activities. 

The standard form of payroll should be used by all organiza- 
tion units, and as far as possible should be prepared by author- 
ized persons who can certify to the correctness of the data shown 
thereon. In every case the exact tinu^ shown on the payroll should 
be supported by detailed time reports, certified as correct by 
the person in charge having a direct knowledge of the facts. 

The certificates on the payroll should cover the following 
points : 

That the amounts stated on the payroll are properly charge- 
able against the appropriation or fund specified. 

That no part of the several amounts charged on the pay- 
roll have been included or paid on previous payrolls. 

That there is on file evidence that each person named on the 
payroll was duly elected or appointed to the positions in- 
dicated. 

That there is on file a duly certified report covering the 
time worked as shown on the payroll. 

That payment of the total amount shown on the i)ayroll will 
not exceed the unencumbered balance of +he respective 
appropriations chargeable. 

I iruoicp -Vouchers. 

At the time purchase orders are transmitted to vendor.s 
blank copies of the invoice form (original and dui^licate) should 
be enclosed. In rendering bills the vendor should pre})are the 
invoice in duplicate, giving the following information : 

193 
C of C— 13 



Name and address of vendor. 

Date of invoice. 

Number of order (under which deliveries are being 

made). 
Particulars of deliveries. 
Amount of each item. 
Total amount of invoice. 

On the reverse side of the invoice-voucher standard certifi- 
cates and columns for the distribution of the total amoimt of the 
invoice according to appropriations chargeable and the expense 
classification should be printed. These certificates should be 
signed by the person to whom delivery is made and also by the 
responsible, supervising official, who should insert the fund dis- 
tribution and the expense classification before transmitting the 
copy of the invoice-voucher to the accounting officer. 

The adoption of such a system will enable the accounting offi- 
cer to audit claims currently from day to day instead of hav- 
ing them pile up monthly or semi-monthly as at present. 

With respect to invoices on wliich a cash discount for prompt 
payment may be obtained, it should l)e possible for the account- 
ing officer, as soon as he has completed the audit, to proceed im- 
mediately to draw a warrant-check therefor and transmit it to 
the proper officers for signature and transmittal to vendor. 
/ -AH invoices not subject to a cash discount should be paid at a 
fixed time once each month. Under such conditions audited in- 
voices may be accumulated so that one warrant-check may be 
prepared, covering all invoices rendered by the same vendor 
during a given month. 

The main advantages to be derived from the use of a stand- 
ard form of invoice-vouchers are : ^ 

Assurance of uniform certifications as to delivery and in- 
spection. 

Ability to follow up deliveries and hence take advantage of 
discounts. 

Charges can be entered on the books within the appropriate 
fiscal period. 

194 



Audit, filing and general accounting work is facilitated. 
Accounting officer receives immediate advice of claims in- 
curred. 

Register of Accounts Payahle. 

This register should be a loose-leaf record in which all 
invoice-vouchers are entered immediately after audit. The es- 
sential information to be recorded in respect to each claim is as 
follows : 

Order number. 

Invoice-voucher number. 

Warrant-check number. 

Date of invoice. 

Date of registration of invoice. 

Name of claimant. 

Nature of claim. 

Amount of claim. 

Code number of appropriation chargeable 

The distribution of each invoice-voucher by class of fund and 
the main classifications of expenditure should also be shown. 

The record will disclose at all times the condition of accounts 
payable, i. e., whether they have been audited only or warranted 
for payment. Incidentally, the record will help to prevent dupli- 
cate payments. In addition, this register will furnish totals for 
posting to the general ledger controlling accounts and will prove 
the accuracy of the postings to the apju-opriatiou ledger. 

Warrant-Check. 

Warrant-checks should be drawn in the accountant's office 
immediately after the invoice-voucher has been audited, when 
a cash discount is offered for prompt payment. At the end of 
each month, warrant checks should be drawn for all audited in- 
voice-vouchers on which discovmt has not been allowed, i. e., for 
all accounts not previously paid. Only one warrant-check should 
be prepared in payment of all the claims Tinvoice-vouchers) of 
the same vendor received during the preceding month. 

195 



Warrant-checks should be prepared "^in duplicate by carbou 
process. The original should be divided into two parts by a per- 
foration, the upper portion being a statement of invoices, while 
the lower portion forms the warrant authorizing the treasurer 
to pay the vendor the sum of the invoices listed on the upper 
portion of the sheet, and later becomes a check. 

The information to be shown on the upper portion of the 
warrant-check is as follows: 

Number of warrant. 

Date of invoice. 

Invoice number. 

Particulars of invoice. 

Code number of appropriation chargeable. 

Amount of invoice. 

Total of all invoices. 

On the lower portion of the warrant-check would be shown : 

Check number. 

Date. 

Name of payee. 

Amount (in words and figures). 

Signature of fiscal officers. 

Signature of treasurer. 

All of the above information, except the signatures, will also 
appear on the duplicate copy of the warrant-check. In addition, 
space will be provided on the duplicate for certification as to the 
verification of calculations, and approval for payment. 

After the warrant-cheeks have been drawn and signed by the 
fiscal officers, they become an order on the treasurer to pay. 
The procedure to be followed should be for each warrant to be 
sent to the treasurer for signature and registration before issu- 
ance. The warrant-check should be so designed that the signa- 
ture of the treasurer converts the warrant into a check on a 
designated bank. 

A space should be provided on the duplicate warrant-check for 
certification by the accounting officer to the effect that the in- 
voice-vouchers are correctly listed and charged, and that there 

196 



are miencunibered appropriations sutlicioiit to cover the total 
amount of the warrant. It is only upon such certification that 
the treasurer should sign a warrant. 

The duplicate of the warrant-cheek should be Hied by the 
accounting officer with the copy of the order and the inv^oico- 
vouchers. 

After registration by the treasurer, the warrant-check should 
be mailed directly to vendors or handed out to clainiants who 
may call at his office to collect. 

The use of the pro])osed warrant-check would save much cleri- 
cal work, and wauld 

Secure an exact copy of the payment document. 
Eliminate letters or advices of transmittal in connection 

with the mailing of remittances. 
Greatly facilitate the audit of claims. 
Simplify filing procedure. 

Register of W arrant-Checks. 

A register of warrant-checks and withdrawls from banks 
should be installed in the office of the treasurer. In this record, 
all warrant-checks signed by the treasurer should be recorded 
before issuance. The following infornmtion should be shown in 
respect to each warrant-check: 

Warrant-check number. 
Voucher number. 
Name of payee. 

Code number of appropriation chargeable. 
Amount of warrant-check. 

Distribution of amounts (by baid\s on which checks are 
drawn). 

Claiiiia It Is ' Ledger. 

A claimants' ledger, in card form, giving brief details of 
all financial transactions with each creditor, should be adopted. 
This record should show the following information : 

Name and address of creditor. 
Date of invoice. 

197 



Particulars of invoice. 
Amount of invoice. 
Date of warrant-check. 
Amount of warrant-check. 
Amount of adjustinent authorities. 

These cards, if posted currently, will show, at all times, the 
^amount due to each creditor, and in addition the amount of 
business transacted with a vendor during a given period. They 
will also form a valuable record for reference purposes, and will 
tend to reduce duplicate payments. 

Registered Bill. 

A standard form of registered bill should be used for 
billing amounts due to the department for all classes of revenue 
or accounts receivable for which it is not necessary to provide 
special forms. 

Registered bills should be prepared in duplicate. The infor- 
mation to be inserted thereon is as follows : 

Registered bill number. 
Date. 

Classification of revenue or account receivable. 
Name and address of debtor. 

Description of Avork performed or supplies furnished. 
Amount of bill. 

Code number of appropriation or fund account to be 
credited. 

All such bills should be cleared over the desk of the account- 
ing office if they are not prepared directly under his supervis- 
ion. 

Brgister of Accoioits Receivable. 

This register should be used to record all amounts accru- 
ing to the department. Every bill for an amount due should be 
cleared through the accounting officer, if not rendered by him 
directly. The information to be recorded on this register is as 
follows : 

19S 



Date. 

Name of debtor. 
Particulars of account. 
Period covered. 
Amount of accrual. 

Distribution of accrual (according to period covered, 
etc.) 

In every ease bills should be recorded in this register before 
issuance. 

Expense Ledger. 

In order that details of expenditures may be available for 
the guidance of administrative officials and for the preparation 
of special statements to the state and federal educational bu- 
reaus, it is necessary to operate an expense ledger. This record 
should be loose-leaf in form, a separate sheet being provided for 
each functional group of accounts appearing in the standard 
classification of expenditures. The information to be recorded 
in this ledger is as follows : 

Department or function. 

Bureau or sub function. 

Title of account. 

Code number of account. 

Date. 

Description of expenditure. 

Reference. 

Amount. 

Debit. 

Credit. 
Distribution. 

The distribution should be shown in a series of columns at the 
right-hand side of each sheet. In these columns the expenses 
incurred will be analyzed in accordance with the standard classi- 
fication of expenditures. 

Postings to this ledger are from three sources : 
199 



Invoices and payrolls registered in the register of accounts 

payable. 
Distribution of stores issued. 
Register of accounts receivable. \ 

The majority of the items posted to this ledger are debits. 
If, through clci'ical errors or otherwise, a credit entry is neces- 
sary, it should be entered in the column headed "credits" and 
extended to -the right in the appropriate column, in red ink. 

Kegister of Receipts. 

A register of receipts should be used to record all moneys 
received irrespective of the nature of receipt. This record 
.should be ruled to show the following information : 

Date of receipt. 

Reference to charge (registered bill number, etc.) 

Name of payor. 

Amount received. 

Distribution. 

The distribution will be made in several cash columns bearing 
headings corresponding to the kinds of receipts most frequently 
received. Further blank headed columns should be provided 
for special receipts of an infrequent nature. A column should 
be left at the extreme right of the sheet in which to insert the 
title of the fund to be credited in respect to items not analyzed 
specitically. 

€ash Book. 

A cash book should be maintained by the treasurer. This 
cash book should ho written up daily, the necessary entries being 
obtained as regards receipts from the register of recnipts. and as 
regards disbursements from the register of warrant-checks. Only 
the daily totals from these two registers should be entered in the 
cash book — information required as to details can always be ob- 
tained by direct reference to the registers. 

The cash book should balanced and the balance verified by 
means of counting the cash on hand Avith the treasurer, and ob- 

200 



taiuing a eertific-atc as to the balance at bankers. This work 
should l)e performed either by the auditor or the accounting of- 
ficer. If an independent auditor is available it would be pref- 
eral)ly performed by sucli an of^eial. 

I'i'operty inid Equiptncnt Ledger. 

The property and eciuipnient ledger should be in loose- 
leaf form and should contain an account for each parcel of real 
estate, building or other impi'ovenient. and each inventory of 
equipment, classified as desired. 

It should be designed to record the following information re- 
garding all property of the department: 

Description of property (class, location, dimensions, etc.) 

Probable life. 

Date of acquisition or construction. 

Original cost or appraised value. 

Additions (purchases). 

Deductions (sales, transfers, losses, etc.) 

Depreciation (or appreciation). 

Repairs ((Icscription. cost and date made'). 

These accounts should be opened originally from data collected 
by the several persons under whose jurisdiction the ]u*operty is 
held and used. Subsequent!}' these accounts may be augmented 
by charges for invoices, payrolls, and original warrants as addi- 
tional property is acquired by purchase or construction. The 
ledger should be divided into the following main divisions: 

1 — Real estate sites and buildings — This division should con- 
tain an account for each piece of property consisting of 
or occupying a parcel of land identifie.d by description 
and map of boundary, as well as of buildings or other 
structures situated thereon. It should show the cost of 
purchase and construction, and all outlay constituting 
the total cost of acquisition, betterments, and extensions 
as they have severally ensued, as well as the provision 
for dejireciation consequent upon use. age. and obso- 
lescense. 

201 



2 — Portable property and equipment of all kinds — This divi- 
sion should contain accounts of each character of chattel 
listed and classified upon schedules or inventories cur- 
rently prepared, corrected and recast as changes occur. 

3 — Work in progress — This division should contain accounts 
with all properties included in division 1 insofar as 
they relate to the various stages and particulars of con- 
struction, which, when completed, would be transferred 
in a suitable summary form to division 1. 

General Journal. 

A general journal should be provided. This may be in 
loose-leaf form, in which case it would consist of journal vouch- 
ers each on a separate sheet consecutively numbered, or, if pre- 
ferred, a bound book may be used. 

The information in respect to each journal entry would be as 
follows : 

Journal voucher entry number. 

Date. 

Fund affected. 

Particulars of entry. 

Subsidiary ledger. 

Posted by. 

Amount — Debits. 
—Credits. 
General ledger. 

Posted by. 
Amount — Debits. 
— Credits. 
Certification as to correctness by accounting officer. 
Approval by fiscal officer. 

The form of journal should provide for showing the entries 
relating to the general and subsidiary ledgers in parallel col- 
umns. All postings to the general ledger should be made through 
the general journal. 

202 



General Ledger. 

A general ledger containing controlling accounts over all 
other financial records should be installed and operated. 
The uses and purposes of a general ledger are — 

1 — To make available in a single record all the facts necessary 
to inform those in administrative control concerning the 
true financial condition of the department and the re- 
sults of operating its various functions. 

2 — To obtain control over tli(> accuracy of all othei- depart- 
mental financial records and reports. 

In order that business transactions may lie sninmarized. two 
groups of accounts should be maintained in the general ledgei' — 
one relating to proprietar}^ transactions, and the othei- to fund- 
ing operations. 

The first group should show what the department owns, what 
it owes, and what the results of its operations have lieen, ex- 
pressed in terms of revenue, expense, surplus or deficit. The sec- 
ond group should show the resources available and appropria- 
tions or authorizations to incur liabilities against such resources. 
In other words, the general ledger shcmld contain all summary 
and other accounts necessary to produce a comjilete balance sheet 
and operation statement of the department. 

As a saving can be effected by standardizing the ruling of the 
general and various subsidiary ledgers, it is suggested that stand- 
ard forms of debit and credit ledger sheet and analytical ledger 
sheet be adopted. These could be used not only for the general 
ledger, but also for subsidiary ledgers, or any other ]uu'pose re- 
quired. The ledger sheets should be printed in loose-leaf form 
so as to permit of arrangement in any mannei' desii-ed. Tt is 
recommended that after the sheets forming the new general led- 
ger are settled, the loose-leaf sheets on which such accounts are 
Avritten up be bound in ])ermanent form. 

Sfatriiiriif of Appropriation Balances. 

A special form of statement of apju'oiu-iation balances 
should be devised and installed. 

203 



This should show with respect to each appropriation the fol- 
lowing information : 

Amount of appropriation modified to date. 

Total amount of expenditures charged. 

Amount of unexpended balance. 

Amount of reserve for contract and open-market orders. 

Amount of unencumbered balance. 

Copies of this statement should be submitted to the adminis- 
trative officials of the department at the end of each month or as 
soon as possible thereafter. 

Financial Statements. 

In addition to the monthly statement of appropriation 
balances, the accounting officer should prepare at designated per- 
iods the following statements showing the financial condition of 
the department for submission to the administrative officials : 

Balance sheet. 

Statement of revenues and expenditures. 
Statement of receipts and disbursements. 
Fund statement. 

The necessary data for the preparation of these statements 
will be obtained from the general ledger and other subsidiary 
records after trial balances have been prepared, proving the 
accuracy of the accounts as posted. 

The balance sheet is a summary statement showing at a cer- 
tain date and hour the estimated values of property and the 
amounts due from debtors, on the one side, and, on the other 
side, the amounts due to creditors, the difference between the two 
sides also being arrived at in order to show the approximate sur- 
plus or deficit. 

The statement of revenues and expenditures should show rev- 
enues accrued through the levying of taxes, etc., or from charges 
for privileges and servces ; the cost of administration, operation 
and maintenance of the department and the excess of revenue 
over cost, or the excess of cost over revenue. 

204 



The statement of receipts and disbursements should he an 
analytical summary showing the various classes of receipts and 
disbursements during- a fiscal period. The information for this 
statement should be obtained from the records of the treasurer. 

The fund statement should show the luiencumhered balances of 
authorizations to incur liabilities and the contingent liabilities 
on contracts and orders on the one hand, offset by the i-esoui'ces. 
actual and prospective, which should l)e available by the titne the 
contingent liabilities matui'c into actual liabilities. The details 
of the unencumbered balances and the contingent lia])ilities are 
carried in the appropriation ledgei-s aiul othei- recoids in whii-h 
liabilities are recorded. 

All of these records are conti'olled by means of aeeounts car- 
ried in the general ledger. 

Stores Acco Kilts. 

Proper records, including standard forms and procedure, 
should be established to control the i-eeeij)!, storage and i-on- 
sumption of supplies and materials. 

No goods should be received except by a consignee duly au- 
thorized by an otficial order to receive, and no supplies or ma- 
terial should be issued from a storehouse except upon receipt of 
a re(]uisiti(m approved by sonu' authorized pei-son. As supplies 
or materials are issued, they should be billed by means of a stores 
invoice to the person who is entitled thereto as (n-idenced by the 
requisition. Special stores transfer sheets should be j)rovided foi- 
use when transferring stores from one point to another. 

Advice of goods received from vendors should be pi-epand and 
transmitted to the accounting officer for each delivei-y. 

A stores ledger should b(^ maintained by the accounting officer 
which should show the cpiantity. kind and value of all nuiterial 
or supplies received and issued, and the cpiantity on hand at any 
time. A card index ledgei- is the most suitable foi- this i)ur|iose. 
The person in physical charge of th(^ stores should be re(|iured 
to maintain currently stock cards showing the (luautity of each 
cla.ss of nmterial received and issued, together with the (piantity 
on hand at any given time. 

205 



All receipts and issues of supplies and materials should be re- 
ported to the accounting officer periodically, and persons to 
whom goods are issued should be required to account therefore 
through an adequate system of consumption records. 

By such methods only can control be obtained over supplies 
and materials. An efficient system of stores record is invaluable 
at budget-making time to insure proper appropriations being 
made. 

Cost Records. 

"With a view to securing information essential to control 
over the efficiency of departmental forces, a suitable system of 
cost recoi'ds should be established. Considerable time should be 
devoted to the design of such a system and to the writing of a 
tentative procedure governing the use of forms and the compila- 
tion of costs and statistics therefrom. 

The objects to be attained by the installation and operation of 
such a cost system are briefly as follows: 

1 — To ascertain the total and unit cost of each class of work 
performed. 

2 — To sliow the quantity of each class of work performed. 

3 — To show separately the three main elements of expense en- 
tering into the cost of each class of work, namely, 
a — Salaries and wages, 
b — ^Material charges, 
c — Plant and equipment charges. 

4 — To show comparatively the cost of performance of each 
group of workers. 

5 — To secure by interpretation of this data information as to 
the efficiency of performance by departmental forces, 
thus facilitating administrative control. 

6 — To slunv when taken in conjunction with records of cur- 
rent conditions the adequacy of the service rendered to 
the public. 

206 



7— To permit a determination of the point beyond which it 
will be undesirable, from an economic point of view, to 
continue maintenance work, or, in other words, the time 
when replaeenu'ut must bo contemplated. 

8 — To provide data on which dcpai'tmental Inidget estimates 
may be based. 

Classification of Expenditures. 

It is very desirable, if all the essential data required by 
administrative officials are to be available, that an adequate 
classification of expenditures be established. Such classification 
forms the framework of the accounting structure and upon it 
the value of the whole accounting system largely depends. 

The classification should be constructed so as to permit of the 
segregation of expenditures according to the functions or activi- 
ties of the department and should be subdivided, under such 
functions or activities, according to the character of expenditure 
incurred. 



20^ 



APPENDIX "C" 



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FORM NO. 2 (1 copy) 
REQUISITION FOR SUMMER REPAIRS. 

(frout) 

BOARD OF EDUCATION 
Harrisburg, Pa. 

Repairs. Alterations and Improvements 

School Building 

For the year beginning July 1, 191 

Note opposite each item of repairs required, the extent and 
location of such repairs. 

EXTERIOR OF BUILDING 

Pointing up brick work. 
Repairing frame work. 
Painting frame work. 
Repairing roof. 
Painting roof. 

Repairing gutters, leaders and cornices. 

Improvements required — snow guards, storm doors, storm 
sashes. 

FENCES AND OUTBUILDINGS. 

Repairing fence. 

Painting fence. 

Repairing and painting outbuildings. 

YARDS AND SIDEWALKS 

Grading. 
Flagging. 



209 
C of C— 14 



FORM NO. 2 

(Reverse side.) 



INTERIOR OP BUILDING 

(Indicate by floor iiiiinber and room number where work is to 
be done.) 

Repairing plaster walls. 
Repairing woodwork. 
Painting plaster walls. 
Fainting woodwork. 
Repairing flooring. 

HEATING AND VENTILATING SYSTEM 

SANITARY SYSTEMS 

ELECTRICAL SYSTEM 

MISCELLANEOUS 



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210 



FORM NO. 3 (In triplicate) 
OPEN ORDER TO MAKE REPAIRS 



BOARD OF EDUCATION, 

• 121 Chestnut Street, Harrisburg, Pa. 

191. 

M 

Please repair at the School. No 

the following, and charge to the board of education: 



Bills passed by superintendent 
on fifteenth of each month. 



Supt. of Buildings and Grounds. 



BOARD OF EDUCATION. 121 Chestnut Street, Harrisburg, 

Pa 191 

*NOTE TO PRINCIPAL. 

Allow ]\I _.. 

To repair at the School. No 

the following and sign below on satisfactory completion of work: 



I certify the above has been repaired, 



*NOTE — This permit must be shown to the princip^al before startingr 
work and on icomipletion of work si^rned by him and returned to this 
office with bill. 



Principal. Supt. of Buildings and Grounds, 

Triplicate copy is in the form of stub which remains i)i the 
order book. "When the principal's copy is returned signed it is 
pasted over the stub for reference. 

211 



FORM NO. 4 (In duplicate) 
WORK ORDER ON DEPARTMENT REPAIRMEN 



(Front) ■ 

BOARD OF EDUCATION. 

Harrisburg, Pa. 

191. 

Work Order No. 

To 

Please have the folloAving work done for the 

School: 



Detail specification 



Enter on the other side of this sheet an itemized state- 
ment of labor, materials, etc., used in the above work, 
except cost, and return same to this office w^hen work is 
completed. 



Supt. of Buildings and Grounds. 



212 



FORM NO. 4 
(Reverse Side) 



Work commenced 



Work finished 



Date. 



Labor 



Workmen. 



Quantity 



Time Per 
Hours. Hour. Amount 



Material 



Description. 



Price 
Per 



Incidentals 



Total Cost 



Total. 



213 



FORM NO. 5 

MONTHLY REPORT ON JANITOR SERVICE BY 
PRINCIPALS 



To the Superintendent of Buildings and Grrounds: 

According: to the Rules and Regulations of the Board, I here- 
with submit the following report of the work of the janitor, and 

the condition of the 

School building for the month ending , 19 : 

1. Care of toilets and basements 

2. Care of floors , 

3. Condition of the walls and windows 

4. Heating and ventilating _ 

5. Care of school furniture 

6. Care of yard 

7. General helpfulness 

. Recommendations and suggestions : 



Principal. 



Ratings should be by percentag-es, thus "very good" — 90% -100%, etc. 



214 



FORM NO. 6 
JANITOR'S MONTHLY REPORT 



To the Superintendent of Biiildinjis and Grounds: 

I herewith snliniit monthly i-e]iort of my work as janitor of 

the school for the month of 

191 







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Coal received during month tons. 

^Electric liglit meter, beginning of month 

ending 

jElectrie power meter, begiin^iiig of month _ 

ending 

Repairs made by me _ 

Remarks: _ 

Signed Janitor. 



*Can be obtained rous'hly from wheelbarrow loads used. 
+ To be read with inspector of company. 

Entries must be made daily and rei)ort must remain at buihling 
for inspection until comi>letod. 



215 



EXHIBIT NO. 7 

CLASSIFICATION OF OPERATING ITEMS FOR 

CRITICAL ANALYSIS 

(Colunm headings for chart) 

Name of school. 

Volume of building, cubic feet. 

Number of classrooms, including equivalent of auditorium, 

gymnasium, etc. 
Proper number of seats. 
Heating system. 

Total grate area in furnaces, square feet. 
Total grate area under boilers, square feet. 
Total radiation, square feet. 
Direct. 
Indirect. 
Annual coal consumption. 
Tons. 

Cost per ton. 
Total cost. 
Cost per cubic foot. 
Cost per classroom. 
Cost per square foot of radiation. 
Electrical light and power. 

Connected lighting load, k. w. 
Connected power load, k. w. 
Annual consumption of electricity. 
For light — k. w. hours. 

Total cost. 
For power — k. w. hours. 
Total cost. 



216 



jj|BRftRY OF CONGRESS 

020 975 051 ft . 



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